Jul 14, 2023; Los Angeles, CA, USA; Picketers stand on the picket line at Paramount studios on July 14, 2023. SAG-AFTRA authorized their members to strike after contract talks with movie and television producers broke down on July 13. The actors join members of the Writers Guild of America which has been on the picket lines for over two months. Mandatory Credit: Yannick Peterhans-USA TODAY
Los Angeles, California – Paramount Global is cutting 3.5% of its U.S. workforce, amounting to several hundred jobs, as the company confronts the ongoing unraveling of the traditional television business and prepares for a potential merger with Skydance Media.
The layoffs, announced Tuesday in a company-wide memo, come amid mounting pressure on media conglomerates to restructure and slim down in response to steep declines in linear TV and broader macroeconomic uncertainty. While the exact number of employees affected has not been disclosed, the layoffs are the second major round of staff reductions in less than a year. Last August, Paramount began a workforce reduction effort that impacted 15% of its domestic employees.
In their joint memo, Paramount’s three co-CEOs — George Cheeks, Chris McCarthy, and Brian Robbins — acknowledged the difficulty of the decision. “These changes are necessary to address the environment we are operating in and best position Paramount for success,” they wrote, citing the company’s ongoing investment in streaming as a critical priority.
The cuts come at a sensitive time for the company. Paramount is currently seeking regulatory approval for its proposed merger with Skydance Media, a process that an ongoing legal dispute between CBS, a Paramount subsidiary, and the Trump administration has complicated. The dispute centers on a 60 Minutes interview with former Vice President Kamala Harris, which has become a point of contention in the merger review.
At the same time, Paramount’s executive leadership has faced increasing scrutiny. According to recent filings, the company paid its three co-CEOs a combined $148 million last year. Former CEO Bob Bakish, who was removed earlier this year, received a compensation package worth $87 million.
The restructuring also coincides with the departure of Paramount CFO Naveen Chopra, who will step down at the end of the month to take on the same role at gaming company Roblox. The company said his resignation was not the result of a disagreement with Paramount or its board.
Paramount’s layoffs are part of a broader trend across the entertainment industry. Disney and Warner Bros. Discovery have also announced job cuts in recent weeks, citing many of the same pressures. With traditional television in decline and streaming platforms still struggling to turn a profit, studios across Hollywood are entering a period of painful transformation — one in which stability remains elusive and long-term strategy often means short-term loss.
