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Paramount CEO Warns Layoffs Are Coming as Company Adjusts to ‘Current Realities’
January 26, 2024
On Thursday, Paramount Global CEO Bob Bakish said that the media company will conduct an unspecified number of layoffs as it strives to become a leaner organization that spends less. With upcoming cuts, Paramount will look to manage costs and seeks to drive earnings, he wrote in a memo to staff seen by Reuters. Bakish says he is looking for the company to adjust to “current realities.”
“Our priority is to drive earnings growth. And we’ll get there by growing our revenue while closely managing costs — a balance that will require every team, division, and brand to be aligned,” Bakish said in the memo to employees.
Bakish continued that the company would expand its shared services model wherever possible. This will go hand in hand with streamlining operations.
“As it has over the past few years, this does mean we will continue to reduce our workforce globally,” Bakish wrote in the memo. However, the company did not disclose how many jobs it would cut overall at Paramount.
Currently, Paramount’s plans focus on its most potent, resonant franchises, films, and series. Bakish said that a “One Paramount” mentality will drive better results and help Paramount become a leaner company, per Broadcasting & Cable.
Bakish believes the problems Paramount faces are multifaceted. A soft ad market, the Hollywood strikes of 2023, and other “volatile” environments were part of the issues that led to these changes, as well as a transition from traditional movies and television to streaming.
“It’s no surprise that Paramount remains a topic of speculation,” Bakish wrote. “We’re a storied public company in a closely followed industry.”
He said Paramount would press for more collaboration across teams, time zones, and functions on “efforts like cross-promotion, innovative partnerships, data and insights and more, to make the most out of our assets and expertise.”
Per The Wrap, Paramount is set to report its next quarterly earnings on Feb. 28 after the market close. The memo noted that additional updates on the company’s strategy will be relayed over the course of the year.
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