Paramount Global is implementing significant workforce reductions, terminating approximately 800 employees, just a day after the company celebrated record-breaking Super Bowl viewership on CBS. CEO Bob Bakish conveyed this news in an internal memo to employees on Tuesday.
The layoffs equate to around 3% of Paramount Global’s workforce, totaling about 24,500 full-time and part-time employees at the end of 2022. Affected employees are set to be notified on the same day, as mentioned by Bakish in the memo.
In the note, Bakish highlighted that these adjustments are crucial for building on the company’s momentum and executing its strategic vision for the upcoming year. Despite the layoffs, he expressed optimism about the future.
Paramount shares experienced a roughly 4% decline in morning trading on Tuesday. Deadline had initially reported the impending job cuts in January.
Paramount Global, which owns assets like CBS, Paramount Pictures, Pluto TV, Paramount+, and cable networks such as Nickelodeon, BET, and Comedy Central, is exploring merger and acquisition options. Recent discussions with Skydance Media and Warner Bros. Discovery indicate the company’s interest in potential partnerships.
The internal memo from January 25 had forewarned employees about the forthcoming cuts, emphasizing the need for Paramount Global to operate as a more streamlined organization with reduced expenditures.
Despite the success of Super Bowl 58, the Paramount+ streaming service continues to incur losses each quarter, with a reported loss of $238 million in the third quarter. Paramount Global is scheduled to release its fourth-quarter earnings on February 28.
Super Bowl 58, broadcast on CBS, marked the most-watched television show in history, with an estimated 123.4 million viewers across all platforms. CBS also set a record for charging an average of $6.5 million for every 30-second Super Bowl advertisement, leading to additional revenue gains due to the game going into overtime.
