On Tuesday, Paramount Global started what it referred to as “phase two” of its cost-cutting strategy, which involved letting go of 15% of its American employees.
Although Skydance Media is in the process of purchasing the company, the CEO’s three-person office has already started working on a $500 million cost-cutting strategy. Skydance intends to make more financial reductions.
In August, the first round of layoffs occurred. Ninety percent of the planned workforce reductions will be finished after this round, according to CEOs George Cheeks, Chris McCarthy, and Brian Robbins.
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McCarthy stated that layoffs would primarily target two areas during the company’s second-quarter results call: “First, redundant functions within marketing and communications.” The second is simplifying our organizational structure and cutting back on the number of employees in technology, finance, and other support areas.
Although the number of employees affected by each round of layoffs is not disclosed by the corporation, it anticipates reducing its U.S. headcount by roughly 2,000 by year’s end.
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The CEOs wrote in their message on Tuesday, “Like the entire media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses.” “We are taking these steps to position Paramount for sustained success, and by today, 90% of these reductions will be finished.
“There are never simple days, like today. We are deeply appreciative of the numerous contributions made by our departing colleagues, and it is never easy to say goodbye to them,” the CEOs stated.
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