Chief Executive Officer Bob Bakish revealed in an internal memo to employees on Tuesday that Paramount Global is initiating layoffs, just a day after CBS celebrated record Super Bowl viewership.
Approximately 800 employees, constituting an estimated 3% of the workforce, will be affected by the layoffs, as confirmed by a source familiar with the matter. Paramount Global concluded 2022 with approximately 24,500 full-time and part-time employees.
Bakish stated in the memo that affected employees would receive notification on Tuesday. He expressed confidence that these adjustments would facilitate the company’s momentum and execution of its strategic vision for the upcoming year.
Paramount shares experienced a 4% decline in morning trading on Tuesday. The number of cuts was initially reported by Deadline in January.
Paramount Global boasts a diverse portfolio, including CBS, Paramount Pictures, Pluto TV, Paramount+, and cable networks such as Nickelodeon, BET, and Comedy Central.
These job cuts coincide with the media company’s exploration of merger and acquisition opportunities. Paramount Global has engaged in early discussions regarding potential mergers with Skydance Media and Warner Bros. Discovery in recent months, as previously reported.
In a January 25 internal memo, employees were forewarned of impending layoffs. Bakish emphasized the necessity for Paramount Global to operate more efficiently and reduce expenditure.
Paramount+’s streaming service continues to incur losses each quarter, with a reported loss of $238 million in the third quarter. The company is set to announce its fourth-quarter earnings on February 28.
Super Bowl 58, broadcasted on CBS, marked the most-watched television show in history, with an estimated 123.4 million viewers across all platforms. CBS achieved a record-high average of $6.5 million for every 30-second advertisement during the Super Bowl, according to research from Guideline.
The network also earned significant additional revenue due to the game between the Kansas City Chiefs and the San Francisco 49ers extending into overtime.
