(CTN News) – Deadline reports that Paramount Global plans to cut staff in February amid speculation about the company’s future. It is reported that the company will have to lay off hundreds of employees.
There have been rumors circulating recently that Paramount will lay off about 800 employees. Based on a WSJ report in December, the company is looking to cut over 1,000 jobs by early 2024. In spite of the scale of cuts, sources say hundreds are going to be laid off, affecting nearly every division.
According to what I hear, layoffs will commence in February. Targets have been set for executive reductions. A possible date of Feb. 13 has been rumored, but no one has commented on it. Things are currently in flux. Upon notification, affected employees may be asked to leave within three days.
Layoffs at Paramount during the pandemic had a similar short window to depart. In response to requests for comment, neither Paramount nor its representative responded.
Paramount as well as other media companies have experienced multiple rounds of layoffs in the past 14 months. It is expected that CBS Studios and Paramount TV Studios will be impacted in November 2022.
A number of Showtime employees were laid off in February. MTV News, which had operated for 36 years, was closed by the company in May, resulting in the layoff of 25% of its domestic cable employees.
As cuts are contemplated, National Amusements, Inc., the Shari Redstone-led company that owns most of Paramount Global’s voting shares, is reportedly seeking acquisitions.
According to reports, Apollo Global Management has contacted the investment bank advising NAI, BDT & MSD Partners. Skydance Media and RedBird Capital have also reportedly contacted the investment bank.
Almost 80% of NAI’s voting shares are owned by theaters.
The newly merged Paramount has faced challenges such as cord-cutting, a soft ad market, a loss-producing streaming business, and volatility in the movie business. The stock of the company is now worth half as much as it was before the merger.