Paramount Global to lay off about 800 employees

Paramount Global is planning to reduce its workforce by approximately 800 employees, constituting about 3% of its total staff as reported by Reuters. CEO Bob Bakish disclosed in a memo obtained by Reuters that the layoffs, which will affect both U.S.-based and international employees, are part of the company's efforts to streamline operations and achieve earnings growth amidst challenges faced by the media industry.

The decision comes amidst a backdrop of significant changes in the entertainment landscape, with streaming services increasingly overshadowing traditional television. The aftermath of Hollywood strikes in the previous year, coupled with a sluggish advertising market and economic uncertainties, has further compounded pressures on media companies.

Bakish expressed optimism about the company's future despite the workforce reduction, stating that the adjustments are aimed at bolstering momentum and realising strategic objectives for the upcoming year. Paramount intends to concentrate its resources on its most successful franchises, films, and series while scaling back on the production of local and international original content.

Although Paramount declined to comment specifically on the layoffs, the news contributed to a more than 4% decline in the company's shares on the Nasdaq exchange. Bakish had previously hinted at impending job cuts in January, citing the myriad challenges confronting the entertainment industry.