Paramount Global To Lay Off 800 Employees To Reduce Costs And Grow Revenue

Just a day after announcing the record-breaking ad sales and highest-rating for the Super Bowl, the broadcast giant Paramount Global announced its plan of lay off 3% of staffers for cost-cutting.

Harshita Das

Updated on: 14 February 2024 8:21 pm

Paramount Global CEO Bob Bakish Photo: Getty images

Paramount Global, the media powerhouse behind numerous broadcast and cable TV networks, has announced plans to lay off a significant number of employees in a move aimed at cutting costs and bolstering revenue streams. The decision comes on the heels of record-breaking advertising sales and viewership ratings for CBS, a subsidiary of Paramount Global, during the recent Super Bowl event.

In a memo addressed to staff on Tuesday, Paramount Global's CEO, Bob Bakish, revealed the impending layoffs, although the exact number of affected employees was not specified. Sources familiar with the matter, however, informed that approximately 800 workers, constituting roughly 3% of the company's workforce, would be impacted by the downsizing initiative. Bakish's memo follows a previous communication on January 25, in which he hinted at forthcoming staff reductions as part of the company's strategy to enhance earnings growth.

The layoffs are expected to affect personnel across various regions globally, with notifications being delivered to affected employees in the United States by the close of business on Tuesday, according to Bakish's memo. He expressed confidence that these adjustments would position the company to capitalize on its current momentum and advance its strategic objectives for the upcoming year.

Among the casualties of the layoffs are some prominent journalists from CBS News. Senior investigative correspondent Catherine Herridge and chief national affairs and justice correspondent Jeff Pegues were reportedly informed of their termination on Tuesday. Their departure from the network signifies a loss of seasoned talent, with Herridge having joined CBS News from Fox News in 2019 and Pegues serving since 2013 in various reporting capacities, including hosting the podcast "America: Changed Forever."

Notably, Herridge's tenure at CBS News was marked by her involvement in a First Amendment lawsuit concerning her refusal to divulge her sources for investigative stories she covered during her tenure at Fox News. While CBS News declined to comment on the layoffs, the development underscores the challenges faced by seasoned journalists amid industry-wide restructuring efforts.

The layoffs at Paramount Global come amidst swirling rumors of a potential change in ownership. Shari Redstone, the heiress to Paramount's parent company, National Amusements, has reportedly explored selling her stake in the media conglomerate. Speculation about a merger with Warner Bros. Discovery, helmed by David Zaslav, has also emerged, alongside takeover bids from entities like David Ellison's Skydance and RedBird Capital.

Paramount's recent focus has been on transitioning its business model from traditional linear television to streaming services. The company's success in this endeavor was evident in CBS's broadcast of Super Bowl LVIII, which garnered record-breaking viewership numbers and advertising sales. Bakish hailed the achievement as a testament to Paramount's ability to adapt to changing market dynamics.

The decision to downsize underscores the broader trend of restructuring within the media industry, with other major outlets witnessing similar staff reductions in 2024. From The Los Angeles Times to TIME and Business Insider, several prominent publications have announced layoffs, while protests against planned cuts have erupted at Condé Nast, Forbes, and The New York Daily News.