Paramount Global CEO Bob Bakish announced on Thursday that the media company is set to undergo layoffs as part of its efforts to become a more streamlined and cost-effective organization. Bakish cited challenges in the entertainment industry, including a soft advertising market, recent Hollywood strikes, and a volatile macroeconomic environment, all while transitioning from traditional movies and TV to streaming.
In a memo to staff seen by Reuters, Bakish outlined the company’s strategic priorities for the year, emphasizing the need to manage costs and drive earnings. Paramount Global aims to become more efficient, adapting to the changing landscape of the entertainment business. The memo did not specify the number of jobs to be cut.
The decision comes amid broader trends in the tech sector, which saw over 21,000 job cuts in 76 companies in January, according to Layoffs.fyi. In 2023, the tech sector witnessed 168,032 job losses, leading all industries in layoffs, as reported by Challenger, Gray and Christmas earlier this month.
Addressing ongoing speculation about Paramount’s future, Bakish acknowledged the company’s status as a closely watched player in the industry. Reports suggest that David Ellison is exploring the acquisition of National Amusements, the Redstone family’s holding company, to gain control of Paramount Global. However, neither Ellison nor National Amusements have officially commented on these reports.
Bakish emphasized the importance of concentrating on controllable factors and executing the company’s strategic priorities. Paramount Global will focus on maximizing profits from its most impactful franchises, films, and series, such as “Top Gun” and “Mission: Impossible,” as well as the popular TV show “Yellowstone.” The company plans to distribute these properties across various platforms, including streaming, film, television, and licensing.
As part of its ongoing efforts, Paramount Global will continue to drive profitability in its streaming business, with a specific focus on large markets like the US, Canada, the UK, and Australia, where the company has a strong presence, and its studio content resonates effectively.
In conclusion, Paramount Global’s strategic shift and workforce reduction aim to navigate challenges in the entertainment industry while positioning the company for sustained growth and profitability.
