Paramount Global Faces Staff Reductions Amidst Uncertain Future

In a groundbreaking revelation, insiders have shared with Deadline that Paramount Global is set to embark on a new phase of staff reductions come February. The exclusive scoop hints at the potential impact on hundreds of employees throughout the entire company, sending shockwaves through the media industry.

For the past several days, murmurs of imminent layoffs at Paramount—pegged at around 800 positions—have been circulating. This speculation comes on the heels of a December report by The Wall Street Journal, suggesting that the company was contemplating a substantial elimination of over 1,000 jobs in early 2024 to tighten its financial belt. While sources now indicate that the scope of the cuts may not reach the initially projected number, the impact is anticipated to be substantial, affecting virtually every division within Paramount.

Behind closed doors, senior executives have purportedly been handed reduction targets, setting the stage for a significant reshuffling within the company. The anticipated layoffs are slated for implementation in February, with insiders speculating February 13 as a potential target date. Although Paramount remains tight-lipped, sources suggest that impacted employees might face swift departures, potentially within a three-day timeframe—a strategy not unfamiliar to laid-off Paramount employees during previous rounds of cuts amid the pandemic.

Paramount, alongside several media counterparts, has weathered multiple rounds of staff reductions over the past 14 months. Notably, November 2022 saw impacts on CBS Studios and Paramount TV Studios, followed by layoffs at Showtime in February. May brought forth another wave as the company eliminated 25% of staff in its domestic cable networks and bid adieu to its long-standing MTV News division after 36 years on air.

While these cuts hang in the balance, National Amusements, Inc. (NAI), under the leadership of Shari Redstone, is reportedly exploring acquisition offers. The majority shareholder in Paramount Global, NAI has reportedly been fielding interest from Apollo Global Management, Skydance Media, and RedBird Capital, according to sources close to the matter.

NAI, with a diverse portfolio including movie theaters, commands nearly 80% of the voting shares in Paramount. Paramount, forged from the 2019 reunion of Viacom and CBS, grapples with challenges stemming from pay-TV cord-cutting, a soft advertising market, a loss-producing streaming operation, and market volatility in the film industry, despite recent success with the film “Mean Girls.” Paramount’s stock, once soaring, is now valued at less than half of its post-merger peak.

As the curtain lifts on Paramount’s future, the impending staff reductions add another layer of complexity to the narrative, making it a critical juncture for the iconic media conglomerate. Stay tuned for further developments as Paramount Global charts its course through this turbulent landscape.