Paramount Global Announces Layoffs, Cutting 2,000 Jobs as Company Prepares for New Ownership

Paramount Global has initiated a major round of layoffs, notifying nearly 2,000 employees that their positions have been eliminated. The company aims to reduce its U.S.-based workforce by 15%, with the goal of saving $500 million in annual costs. The layoffs will be implemented in three phases, with the expectation that 90% of the actions will be complete by the end of September.

Impact on Workforce and Cost-Saving Measures

The decision to reduce the workforce by 15% is expected to have a significant impact on the affected employees and the overall workforce at Paramount Global. The company is hoping to achieve substantial cost savings through this reduction in staff, as part of its broader effort to streamline operations and improve financial performance.

Reasons Behind the Layoffs

Paramount Global has been grappling with challenges in the cable television industry and the declining relevance of its channels among younger viewers. These factors have contributed to the company's decision to undergo a substantial reduction in its workforce.

Upcoming Change in Ownership

The layoffs are taking place as Paramount Global prepares for a change in ownership, with a group led by David Ellison reaching an $8-billion deal to acquire the company. This transition has further added to the uncertainty and adjustments within the organization.

The Co-Chief Executives of Paramount Global acknowledged the challenges and difficulties associated with the layoffs, particularly in relation to the contributions of the affected employees. The company is navigating a transformative period and is striving to strengthen its business despite the arduous decision to part ways with valued team members.