Paramount lays off 800 staff amid transition away from traditional TV
by themoneyoffice2.com@gmail.com February 14, 2024 · Traditional
Paramount has announced widespread layoffs, cutting about 800 jobs or 3% of its workforce as the company struggles to transition from traditional linear television to streaming.
In a memo to staff, Paramount CEO Bob Bakish said the cuts were necessary “to return the company to earnings growth” and build momentum to execute its long-term vision. Employees impacted include workers across Paramount’s portfolio – at the Paramount Pictures movie studio, CBS, and cable TV networks like Comedy Central, MTV, Nickelodeon, and BET, as well as the Paramount+ and Pluto TV streaming services.
“While I realise these changes are in no way easy, as I said last month, I am confident this is the right decision for our future,” Bakish wrote in the memo. “These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead — and I firmly believe we have much to be excited about.”
The layoffs come just days after Paramount broadcast Super Bowl LVIII, which drew a record audience of 123.4 million viewers. But while the NFL championship demonstrated the reach of its CBS network, Paramount continues to face profit struggles in other parts of its business.
The company’s streaming division, including Paramount+ and Pluto TV, lost over $1 billion in 2022 as it spent heavily on content to compete with Netflix and other services. Paramount’s linear TV revenue also fell 8% last quarter, with advertising sales dropping 14% as more marketers shift budgets to digital platforms.
Bakish expressed confidence in the layoffs, setting up Paramount “to navigate this transition and emerge stronger.” The job cuts reveal the struggle to adapt to the streaming era, where profitability is hard to achieve. Paramount, a media giant built for the cable era, faces revenue declines and multi-billion dollar streaming losses.
In a memo to staff, Paramount CEO Bob Bakish said the cuts were necessary “to return the company to earnings growth” and build momentum to execute its long-term vision. Employees impacted include workers across Paramount’s portfolio – at the Paramount Pictures movie studio, CBS, and cable TV networks like Comedy Central, MTV, Nickelodeon, and BET, as well as the Paramount+ and Pluto TV streaming services.
“While I realise these changes are in no way easy, as I said last month, I am confident this is the right decision for our future,” Bakish wrote in the memo. “These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead — and I firmly believe we have much to be excited about.”
The layoffs come just days after Paramount broadcast Super Bowl LVIII, which drew a record audience of 123.4 million viewers. But while the NFL championship demonstrated the reach of its CBS network, Paramount continues to face profit struggles in other parts of its business.
The company’s streaming division, including Paramount+ and Pluto TV, lost over $1 billion in 2022 as it spent heavily on content to compete with Netflix and other services. Paramount’s linear TV revenue also fell 8% last quarter, with advertising sales dropping 14% as more marketers shift budgets to digital platforms.
Bakish expressed confidence in the layoffs, setting up Paramount “to navigate this transition and emerge stronger.” The job cuts reveal the struggle to adapt to the streaming era, where profitability is hard to achieve. Paramount, a media giant built for the cable era, faces revenue declines and multi-billion dollar streaming losses.
