After letting go 15 per cent of its workforce last year, Paramount, the American multinational mass media and entertainment conglomerate is again trimming its workforce in the US by 3.5 per cent. Why? Because the cable-TV industry has been witnessing a slump for some time now and there is uncertainty in the economic environment.
George Cheeks, Chris McCarthy and Brian Robbins, co-chief executive officers, Paramount reportedly conveyed in a memo to the employees that this workforce reduction was required for the company’s long-term success.
The impacted employees of Paramount—which is the parent company of CBS, MTV and other channels, as well as various Hollywood film studios—have probably even started receiving notifications.
Paramount is not the only company to resort to layoffs. Recently, Disney too let go hundreds of employees in what was termed as the largest layoff in ten months. According to media reports, Disney has been facing financial pressure with movie distribution and television viewership dropping amidst the popularity of streaming services. The company has been trying to check costs ever since Bob Iger came back for a second stint as CEO, after superannuating in 2022. In September of 2024 too, Disney had implemented a round of layoffs that affected approximately 300 employees across various corporate departments, including human resources, legal and finance, as part of the cost-saving initiative.
Meanwhile, Paramount is working on a merger with Skydance Media even while being embroiled in a lawsuit wherein the President of the US has accused CBS News of interfering with the elections.
