800 employees cut as CEO unveils cost memo – The Hollywood Reporter

Paramount Global CEO Bob Bakish recently told his team to prioritize “cost management” and profit growth, amid expectations of impending layoffs and chatter around the entertainment giant .

On Tuesday, the CEO made things official, unveiling plans to cut jobs in the United States, estimated at 800 according to sources, and abroad over time. The company had approximately 24,500 employees during its last 10-K disclosure, which reflects the number of employees as of December 2022. Bakish's note coincides with what was an expected and significant cost-cutting measure at the start of this year, as Wall Street weighs Paramount's prospects as a stance. -single business.

“Unfortunately, part of cost rationalization means that today we will begin the difficult process of saying goodbye to some of our very valued colleagues at Paramount,” Bakish wrote in a memo obtained by The Hollywood Reporter. “We will notify affected employees who are based in the United States by the close of business today.”

The announcement was made just after its channels (CBS, Nickelodeon, Paramount+) hosted Super Bowl LVIII, which broke an audience record with 123 million viewers. The CEO added: “There will also be impacts in some of our offices based outside the United States,” with staff expected to be informed “over time.”

Bakish concluded: “These adjustments will help us continue our momentum and execute on our strategic vision for the year ahead – and I firmly believe we have plenty of reasons to be excited. »

The move comes after a year of cost cuts and company reorganization in 2023 that saw Showtime merge with flagship streaming service Paramount+, MTV News Shutter, a stake in BET put up for sale (and then taken off the market) and the studio resistant to production. impact of a double work stoppage throughout the summer.

Since the start of the year, Paramount shares are down about 7 percent as tycoon Shari Redstone, who controls the conglomerate through National Amusements, is reportedly weighing offers to sell part or all of it. entire media empire. In its latest quarterly earnings release, Paramount beat revenue estimates for narrowing losses at its streaming unit (just $238 million), but it faces lingering questions about whether it can scale to compete with much larger rival companies like Netflix or Disney.

Read Bakish's memo below.

Team,

As we shared on Bob Live in January, returning our company to profit growth is a top priority in 2024. This will require us to continue to grow revenue, while reducing costs. And unfortunately, part of cost rationalization means that today we will begin the difficult process of saying goodbye to some of our very valued colleagues at Paramount. We will notify affected U.S.-based employees before the close of business today. We will directly share details regarding next steps and do everything we can to support you during this transition period.

There will also be impacts in some of our offices based outside of the United States. These notifications will occur over time, consistent with our local legal obligations in each of the countries where we operate. To those we part ways with, we are incredibly grateful for your hard work and dedication. Your talents have helped us advance our mission of unlocking the power of content around the world. We are a better company because of you. While I realize these changes are by no means easy, as I said last month, I am confident this is the right decision for our future. These adjustments will allow us to build on our momentum and execute on our strategic vision for the year ahead – and I firmly believe we have plenty of reasons to be excited.

We are coming off a blockbuster event with Super Bowl LVIII which showcased the full power of Paramount. We're launching a wide range of new and returning programs in prime time on CBS, and last night marked Jon Stewart's return to The Daily Show. We continue to release films, like this week's Bob Marley: One Love, that further our legacy as one of Hollywood's most iconic film studios. And we come together more than ever to form One Paramount, with a continued commitment to our values, cultural imperatives and fostering an inclusive workplace.

We should all take time this week to support each other – our colleagues who will be affected, as well as our remaining teams – to adapt to this change. Personally, I want our entire team to know that I'm committed to sharing updates when we can. As always, I am continually grateful for your commitment to our company. And I am confident that we will get through this transition and emerge stronger than ever.

Best,

Bob