Paramount Global announces second phase of layoffs

Paramount Global announced a second wave of staff cuts Tuesday morning, part of a larger attempt by the owner of CBS, Comedy Central and MTV to cut costs at a difficult time for traditional media companies.

In a memo to employees, Paramount co-CEOs George Cheeks, Chris McCarthy and Brian Robbins said: “To position Paramount for continued success, we are taking these actions and after today, 90% of these cuts will be completed.”

Like its competitors, Paramount has struggled to make a profit as more viewers of its television programs and movies shift to streaming video and digital interaction. That dynamic makes it significantly more complex to reach the large, simultaneous audiences that advertisers and distributors crave.

Paramount announced in August that the company would cut 15 percent of its US workforce ahead of the planned merger with Skydance Media – the layoffs are estimated to affect around 2,000 employees.

Due to the layoffs, the company expects restructuring costs of $300 million to $400 million in the third quarter.

“Days like today are never easy,” the leaders said. “It is difficult to say goodbye to valued colleagues, and to those who are leaving us, we are incredibly grateful for their countless contributions.”

The company declined to provide specific details about which areas of its portfolio the staff cuts were made in. However, the IBEW union, which represents CBS employees, pointed out on Monday that the employees affected worked “as editors, in media production and distribution, and in show production.”

“We are disappointed that CBS has not found a way to retain these highly skilled professionals,” said Robert Prunn, IBEW director of broadcasting and telecommunications, in a statement. “IBEW members have been producing CBS programs since before the invention of television, and these layoffs are a bitter pill to swallow.”