The bosses of Paramount Global warned more layoffs are on the way as part of a $500 million cost cutting plan meant to curb a “simply unacceptable” decline in the media giant’s profitability.
Some 500 employees learned of the grim plans — which also include revamping its Paramount+ streaming service and hiring bankers to sell off unspecified assets — at a Tuesday all-hands meeting with the company’s three co-CEOs Brian Robbins, Chris McCarthy and George Cheeks.
The news comes on the heels of collapsed merger talks earlier this month between media heiress Shari Redstone, Paramount’s controlling shareholder, and Skydance Media, a producer of the “Mission: Impossible” franchise.
Redstone is now reportedly in talks with media mogul Edgar Bronfman Jr., who has partnered with buyout firm Bain & Co. to explore a possible takeover.
While McCarthy said revenue increased by 13% between 2018 and 2023, he said Paramount’s operating income before depreciation and amortization has declined by 61% over the same period — underlining the need for a companywide slimdown.
“Let me be clear: a 61% decline in profits is simply unacceptable,” McCarthy said. “We need to act now to reverse this trend.”
The co-CEOs did not provide numbers on the looming layoffs and told an attendee they were not prepared to give a timeline for job cuts during the Q&A session, according to The Hollywood Reporter.
The co-CEOs announced bankers have been hired to sell unspecified assets to pay down debt, another part of the three-pillar plan.
It’s not Paramount’s first time turning to asset sales. As reported by The Post, Paramount last summer scrapped plans to sell its BET network after bidders including Tyler Perry failed to meet its $3 billion asking price.
Last year, the company sold publisher Simon & Schuster for $1.62 billion.
Paramount previously sold both CBS’ New York BlackRock building for $760 million and CBS’ Studio City lot for $1.85 billion in 2021.
McCarthy said Paramount’s streaming platform has shown progress since the June 4 shareholder meeting.
Paramount+ hit 71 million subscribers, which is up from 67.5 million in the previous quarter, he said.
Paramount established the three-person “Office of the CEO” after pushing out former CEO Bob Bakish — who was a strong opponent of the Skydance merger — in April.
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