Layoff Hypothesis Hits Paramount Following CEO Memo

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Layoffs are apparently within the works at Paramount.

High line

On Thursday, Paramount CEO Bob Bakish despatched an inner memo seemingly saying cuts, saying a 2024 precedence is to drive earnings by rising income and carefully managing prices.

The memo got here amid information that talks have heated up for a Paramount purchaser. Bloomberg reported that David Ellison’s Skydance Media is making a proposal to the Redstone household for Nationwide Amusements, a holding firm that straight or not directly owns 77% of the voting shares of Paramount and likewise controls CBS.

Between the strains

Within the memo, obtained by Adweek, Bakish notes that the steadiness between income progress and managing prices would require “each crew, division and model to be aligned.”

As the corporate appears to leverage the total energy of its portfolio and drive streaming TV profitability, Bakish stated Paramount will function as a “leaner firm and spend much less.”

The corporate will even look to broaden its shared companies mannequin because it tries to “streamline operations.”

“This does imply we are going to proceed to scale back our workforce globally,” Bakish stated. “These choices are by no means straightforward however are important on our path to earnings progress. We are going to proceed to be as considerate as we will be, talk when there’s info to share, and help our groups all through.”

Right now, it’s not identified what number of cuts are on the best way, as Paramount declined to remark.

Regardless of a proposal for Paramount, the potential take care of Skydance Media is reportedly preliminary and will nonetheless collapse.

Rumors round the way forward for Paramount have been swirling since late final 12 months after a report that Warner Bros. Discovery CEO David Zaslav and Bakish had met to focus on a potential merger.

Backside line

The layoff information is the most recent to shake the TV and media business, with specialists anticipating extra consolidation because the 12 months goes on.

In early January, Mike Hopkins, svp at Prime Video and Amazon’s MGM Studios, introduced in a memo despatched to staff that the corporate would minimize a number of hundred jobs. As well as, Bloomberg not too long ago reported that Twitch is shedding 500 staff, or about 35% of its workers.