Paramount Reportedly Preparing for Layoffs; Are Cuts a Prelude to Acquisition?
A new report from Deadline indicates Paramount is getting ready to cut 800 jobs company-wide.
If Paramount Global isn’t moving toward a merger with — or acquisition by — another company, it’s certainly doing its best imitation of a company that’s trying to attract buyers. According to an exclusive report from Deadline, its latest move along these lines will be to cut hundreds of jobs across multiple divisions.
- Paramount will cut more than 800 jobs, with senior executives having been given reduction targets.
- The cuts will likely be handed down sometime in February.
- Warner Bros. Discovery and Skydance Media are two companies who have reportedly shown interest in acquiring Paramount’s assets.
How Deep Will Job Cuts Be at Paramount?
As of the end of 2022, Paramount Global had more than 24,000 employees worldwide. The round of cuts that Deadline reports is coming will see approximately 800 jobs lost, which comes out to around 3% of Paramount’s total workforce. The cull will affect employees company-wide, and is expected to be handed down in mid-February.
This would not be the first time that Paramount has issued massive layoffs in the past 18 months. CBS Studios and Paramount TV Studios cut staff in November 2022; then in February 2023, Showtime saw layoffs as Paramount got ready to merge its content with its streaming platform Paramount+. The MTV News division was shut down in May of last year when 25% of Paramount’s domestic cable staff was also dismissed.
Why is Paramount Cutting Jobs?
Big companies like Paramount cut jobs frequently, as corporate goals change and priorities shift. But in this particular case, it’s hard not to put the rumored cuts into the context of Paramount’s larger current financial struggles.
Paramount’s stock is worth less than half of what it was when Viacom and CBS merged in 2019 to form what is now Paramount Global. A streaming operation that still loses money, combined with a hit-and-miss movie business, and losses from the pay-TV division thanks to cord-cutting have all hit Paramount hard, which is why some observers think that the time is ripe for the company to be acquired by another firm. Cutting jobs might signal to prospective buyers that Paramount sees the need to trim some excesses before being acquired.
Reports arose in late December that Warner Bros. Discovery was at least nominally interested in acquiring Paramount, though that company has debt issues of its own, stemming from the merger of Discovery and WarnerMedia in 2022. Skydance Media, a production house that has partnered with Paramount on some of its biggest recent hits has also checked in on the potential Paramount sale.
Any company that wants to acquire or merge with Paramount Global will face some challenges, but National Amusements — Paramount’s holding company — is clearly on the market if someone can come up with the right offer. The reported job cuts that are coming to the company could be planned to make Paramount more attractive to buyers, and they will certainly stoke more conversation about a possible acquisition of Paramount Global.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr. and more. The lineup includes “1883,” “Tulsa King,” “Star Trek: Discovery,” Nickelodeon’s “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.