Paramount Global to lay off 15% of US workforce – News Today

The cuts will cover two areas, including job cuts in marketing and communications, and finance, legal, technology and other support roles, Chris McCarthy, co-CEO of Paramount Global, said Thursday during a conference call on second-quarter financial results, Xinhua news agency reported.

“These actions will be undertaken in the coming weeks and will largely be completed by the end of the year,” he said, adding that “these are difficult decisions to make.”

A second-quarter earnings report released Thursday revealed serious financial challenges for Paramount, owner of CBS, Paramount Pictures and popular cable networks.

The company reported a massive operating loss due to a $5.98 billion writedown of its cable television networks.

This devaluation is related to the planned acquisition of Paramount by Skydance Media, which is expected to close by September 30, 2025.

The job cuts are part of a previous cost-cutting plan announced by Paramount’s three CEOs that calls for cutting annual costs by $500 million ahead of the merger with Skydance.

The restructuring comes as Paramount grapples with declining revenue across its traditional media operations. Total second-quarter revenue fell 11 percent to $6.8 billion, and the company’s television operations, its largest business segment, saw revenue fall 17 percent.

The decline in TV revenue was attributed to an 11 percent drop in advertising revenue and a 5 percent drop in affiliate and subscription fees. The numbers reflected the challenges traditional media companies face in an increasingly digital landscape.

But amid the financial turmoil, Paramount’s streaming business proved to be a bright spot as the company turned a profit for the first time in its history, with second-quarter revenue up 13 percent and subscription revenue up 12 percent year-over-year, according to the report.