Paramount says to cut around 15% of US workforce

The Paramount Global Paramount+ streaming service logo is displayed on the Sphere arena in Las Vegas, Nevada on February 7, 2024. (Photo by Patrick T. Fallon / AFP)

New York, United States — Paramount Global is set to reduce about 15 percent of its US workforce in the coming weeks, according to company executives on an earnings call Thursday.

The move comes ahead of a planned merger with Skydance Media, which had been announced in July and marked a key step forward for the movie studio after it co-produced the 2022 Tom Cruise blockbuster “Top Gun: Maverick” with Paramount.

Paramount had previously identified cost savings across the company, and the layoffs are part of its efforts to realize them, said Chris McCarthy, who heads Showtime/MTV Entertainment Studios and Paramount Media Networks.

READ: Paramount Global owner calls off merger talks with Skydance Media

Skydance had earlier identified some $2 billion in potential cost cuts at Paramount.

McCarthy added on the call that the company is mainly focused on two areas: functions within marketing and communications, and lowering headcount in finance, legal, technology and other support functions.

“These actions will take place in the coming weeks and will largely be completed by the end of the year,” he added.

According to US media reports, this would involve about 2,000 jobs.

Paramount’s merger deal with Skydance includes a 45-day period during which a special committee of Paramount’s board of directors may consider other offers to buy out or merge with the company.

This period concludes later in the month.

Paramount shares climbed 5.3 percent in after hours trading.

On Thursday, Paramount also reported that its second quarter revenue dropped 11 percent, missing analyst estimates.

It took a $6 billion impairment charge as well, relating to its cable networks.