Paramount Global is implementing a strategic realignment of its business that involves laying off 25% of its domestic team
Dividends
May 10, 2023
May 10, 2023
Paramount Global, a media conglomerate that includes ViacomCBS's television and film assets, is laying off 25% of its domestic team as part of a strategic realignment of its business. The move comes after integrating Showtime into its cable and streaming purview, which will be consolidated into two functions going forward. While the majority of the cuts are being felt by the "networks" group, certain units, including MTV News, will be shut down altogether.
Chris McCarthy, the CEO of Paramount Global, praised the combination of Showtime and MTV Entertainment Studios, which has resulted in an impressive track record of hits such as Yellowstone, The Challenge, and Your Honor. However, he acknowledged the pressure the company is facing from broader economic headwinds and the need to reduce costs.
The Paramount Global layoffs are not an isolated event. Other media giants, such as Warner Bros. Discovery and Disney, have also undergone layoffs and reorganizations. In Paramount Global's case, the cuts come roughly half a year after Showtime’s longtime leader David Nevins was let go, with other top executives following earlier this year.
McCarthy has been busy reimagining the Showtime brand, increasingly focused on three programming buckets: diverse cultures, antiheroes, and high-stakes worlds. Projects that don't fit squarely into those categories have been shelved and, wherever possible, sold elsewhere. The goal is to provide clarity and a higher hit ratio.
In a memo to staff, McCarthy expressed appreciation for the passion and creativity of those leaving and said the company's leadership team and HR partners are committed to ensuring the process is done with empathy and respect. The decision to layoff was a tough one, but necessary for the company's future.
Members of LevelFields received the alert of this event on May 10, 5:10 AM ET
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