Paramount Global faces another round of layoffs, reportedly directed at streaming

Paramount Global’s mission to cut $500 million in costs continued on Tuesday with another round of layoffs. The company’s interim co-CEOs, George Cheeks, Brian Robbins and Chris McCarthy, previously indicated that their cost-cutting plan would include eliminating 15% of the U.S. workforce (an estimated 2,000 jobs), a measure that would account for $300 to $400 million of the reduction strategy. Following a round of cuts in August, which included shuttering Paramount Television Studios, Tuesday’s layoffs represented “Phase Two” of the CEOs’ plan.

According to Deadline, “the streaming organization within Paramount, encompassing several departments, is expected to be the most directly affected by Phase 2,” after cuts in the advertising division last week. “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,” the trio of CEOs wrote in a memo to staffers on Tuesday morning. “In order to set Paramount up for continued success, we are taking these actions, and after today, 90% of these reductions will be complete.”

“Days like today are never easy. It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions,” the memo continued. “We appreciate everyone’s resilience and commitment to delivering some of the biggest hits across TV and Film, and for continuing the hard but necessary work to best position the company for the future. Thank you, George, Chris & Brian.”

Paramount Global, like many of its competitors, has serious financial problems. The cost-cutting plan is meant to help reduce its hefty debts, but layoffs don’t necessarily address the company’s actual issues, which include the fact that its streaming service is choking the life out of its traditional businesses. The team of CEOs told staff this summer that the reduction plan would be more or less finished by the end of the year. However, the company will soon merge with Skydance Media, which identified $2 billion in cuts in its evaluation of the company. So although the interim CEOs’ plan is 90% complete, the restructuring at Paramount is far from over.