Paramount Pictures, one of the most iconic film studios in Hollywood, is set to undergo significant changes as it embarks on a journey to streamline its operations and cut costs. The co-CEOs of Paramount, Chris McCarthy, Brian Robbins, and George Cheeks, recently announced in a memo to staff that the company will be reducing its U.S.-based workforce by 15 percent, starting today.
The planned layoffs will be carried out in three phases, with the first phase commencing immediately and continuing through the end of 2024. The executives stated that 90 percent of the cuts will be completed by the end of September, indicating the urgency of the restructuring process.
In their memo, the co-CEOs acknowledged the challenges of implementing such changes but emphasized the necessity of strengthening Paramount’s business in the face of a rapidly evolving industry. They expressed confidence in the direction forward, despite the difficult decisions that had to be made.
The decision to cut jobs comes as Paramount aims to achieve $500 million in cost savings this year. The company had previously laid off around 800 employees earlier in the year, and the current round of layoffs is expected to impact every division within the organization. The focus will be on eliminating redundant functions and streamlining corporate teams to improve efficiency and effectiveness.
The layoffs also coincide with Paramount’s ongoing sale process, where other bidders have the opportunity to acquire the company. Shari Redstone and her National Amusements had agreed to sell Paramount to a consortium led by Skydance and RedBird Capital. However, the deal is not expected to close until well into 2025, leaving the co-CEOs with the responsibility of managing the company during this transitional period.
Despite the challenges ahead, the co-CEOs reassured employees that they are committed to providing support to those affected by the layoffs and to the teams that will need to adapt to the changes. They encouraged colleagues to offer support to one another during this difficult time and promised to keep everyone updated on the progress of the restructuring process.
In conclusion, Paramount’s decision to cut its workforce is a strategic move aimed at ensuring the long-term viability and success of the company. While the road ahead may be challenging, the co-CEOs are determined to navigate through these changes and lead Paramount towards a brighter future. As the film industry continues to evolve, Paramount is taking proactive steps to position itself for continued growth and success in the years to come.
