Paramount Global is set to lay off hundreds of employees, just one day after the company revealed that CBS achieved record viewership for the Super Bowl.
Approximately 800 employees, or about 3% of Paramount’s workforce, will be affected by the layoffs, according to a source familiar with the situation. As of the end of 2022, Paramount Global employed around 24,500 full-time and part-time workers.
Bakish indicated in the memo that the affected employees will be informed on Tuesday.
“These changes will support our efforts to build on our momentum and carry out our strategic vision for the upcoming year,” Bakish wrote. “I strongly believe we have much to look forward to.”
Following the announcement, Paramount’s shares declined by about 4% in early trading on Tuesday.
Paramount Global, which owns assets such as CBS, Paramount Pictures, Pluto TV, Paramount+, and cable networks like Nickelodeon, BET, and Comedy Central, is undertaking these job cuts as it explores potential merger and acquisition opportunities.
Recent reports indicate that Paramount Global has had preliminary merger discussions with Skydance Media and Warner Bros. Discovery.
In a memo dated January 25, the company had already signaled impending cuts, with Bakish stating that Paramount Global needs to “operate as a leaner company and reduce spending.”
The company’s Paramount+ streaming service has continued to incur losses each quarter, with a reported $238 million loss for the third quarter. Paramount Global is scheduled to release its fourth-quarter earnings report on February 28.
Super Bowl 58, broadcast by CBS, was the most-watched television event ever, with an estimated 123.4 million viewers across all platforms.
CBS set a new record by charging an average of $6.5 million for each 30-second commercial during the Super Bowl, according to research firm Guideline.
The network earned additional revenue as the game, featuring the Kansas City Chiefs and the San Francisco 49ers, extended into overtime.
