Yahoo Finance Paramount starts second phase of its planned layoffs
Paramount Global is starting Phase 2 of its planned layoffs, according to a memo sent early Tuesday morning by the media company's co-chief executives.
The total number of layoffs in this phase was not disclosed. The company previously signaled that there would be three phases of layoffs, the first of which occurred in August. After Tuesday's cuts, 90% of the layoffs will be complete, the memo said. In total, about 15% of the company's U.S. employees, or 2,000 people, will be laid off across the three phases.
"Like the entire Media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses," co-CEOs George Cheeks, Chris McCarthy and Brian Robbins said in the memo. "Days like today are never easy. It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions."
Paramount executives said in June that the layoffs were an effort to save $500 million in annual costs. The company said at the time that the layoffs would be focused on "redundant functions" in media and communications, as well as "streamlining our corporate structure," including finance, legal, technology and other support functions.
Tech scion David Ellison's Skydance Media, along with RedBird Capital Partners and Ellison’s father, Larry, the co-founder of software giant Oracle Corp., are poised to take control of Paramount in the first half of next year, if regulators approve the deal.
Ellison, who is set to become Paramount's CEO after the deal closes, has said he intends to evolve the legacy Hollywood institution into a "media and technology company." Part of that plan includes improving the ad engine and algorithmic capabilities of the company's Paramount+ streaming service and using artificial intelligence tools to "enhance creativity and drive production efficiencies," he said.
This story originally appeared in Los Angeles Times.
