Paramount, the proprietor of television channels such as CBS, MTV, and Nickelodeon, is terminating hundreds of its employees. This move comes at a time when the media company is facing a challenging shift from conventional television.
As per sources cited in a report by the New York Times, nearly 3 per cent of the company's workforce, which totals around 24,500 employees, will be impacted by the layoffs.
In a memo to employees, Paramount's chief executive, Bob Bakish, stated that the cuts were aimed at restoring the company to a trajectory of earnings growth.
“While I realize these changes are in no way easy, as I said last month, I am confident this is the right decision for our future,” Bakish said in a note. “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,” he added.
Paramount, much like its traditional counterparts, has struggled to match Netflix's dominance as streaming services increasingly replace conventional television and movie theaters. Paramount's primary streaming service, Paramount+, has not achieved profitability, thereby affecting the company's overall earnings, according to the report. Paramount's streaming division, which incorporates the ad-supported service Pluto TV, witnessed losses surpassing $1 billion last year.
While Paramount's cable networks witness decreasing viewership, certain aspects of its television business remain steadfast. Paramount's CBS network, which televised the Super Bowl last week, attained record breaking viewership ratings. The Super Bowl is United States' premier annual football game.
