Paramount Global Initiates Second Phase of U.S. Layoffs, Internal Memo Reveals

Paramount Global has initiated the second phase of its planned layoffs in the United States as part of its strategy to enhance profitability, according to an internal memo obtained by Reuters.

These job cuts are integral to the company’s efforts to decrease annual expenses by $500 million while streamlining operations ahead of its merger with Skydance Media.

The layoffs began in August, with a target to reduce 15% of its U.S.-based workforce across three phases by the end of the year. The memo indicated that approximately 90% of these layoffs would be finalized after Tuesday.

Additionally, the company reported a $6 billion reduction in the value of its cable networks last month due to challenges in its traditional cable television business, a situation exacerbated by advertisers increasingly diverting their budgets to streaming services.

Company executives previously mentioned that the job cuts could result in charges ranging from $300 million to $400 million in the third quarter.

This article has been updated to clarify that the company plans to lay off 15% of its U.S.-based workforce in three phases by the end of the year, rather than having begun cuts with 15% of its workforce in August.