Paramount Global, which said it plans to eliminate 15% of its U.S. workforce, began the first of three waves of layoffs on Tuesday.
The company said 90% of the job eliminations will be completed by the end of September, with the downsizing process continuing through the end of the year.
Paramount, struggling as its linear networks lose value, is in the process of being sold to Skydance Media.
“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business,“ Paramount’s three co-CEOs, George Cheeks, Chris McCarthy and Brian Robbins, said in a memo. “And while these actions are often difficult, we are confident in our direction forward. We understand that you may have questions about next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress.”
Paramount announced the layoff plan during its second-quarter earnings call last week. The cutbacks are part of an effort to reduce costs by $500 million. Skydance plans to realize additional cost savings.
The company said the job eliminations would focus on what it calls redundant functions and streamlining corporate teams.
“We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard. In partnership with our HR leaders, we are committed to providing support to employees transitioning on from Paramount and to our teams who will need to adapt to these changes,“ the memo from the CEOs said. “During this time, we ask that everyone please be mindful of how this news may affect your colleagues and offer support to those who need it.”
