Paramount Cuts 15% of US Staff Amid Streaming Shift

Paramount Global's 15% US staff cut and US$6 billion writedown reveal severe challenges in traditional media as the industry shifts to streaming. The move affects about 2,000 employees and aims to cut US$500 million in costs before merging with Skydance Media. Despite industry struggles, Paramount+ and Warner Bros. Discovery's streaming platforms show growth, highlighting both the sector's turmoil and its potential for adaptation, reports CNN. 

The layoffs will target "redundant functions" in marketing, communications, finance, legal, technology, and other support areas, according to Chris McCarthy, Co-CEO, Paramount. The company attributes the writedown to shifts in the linear affiliate marketplace and changes in market value indicated by the Skydance transaction.

"We have incredibly talented people at Paramount and these actions are not a reflection of their contributions," he said. "Rather, they are necessary to transform our organization for the future,” reports Fox Business. 

This announcement reflects the broader struggles facing traditional television companies as audiences increasingly shift to streaming services. Paramount's decision follows Warner Bros. Discovery's recent US$9.1 billion writedown in its television business, highlighting the challenges in the legacy media sector, writes BNN Bloomberg. 

Despite these challenges, there are some positive developments. Paramount's streaming service, Paramount+, reported a US$26 million profit, recovering from a US$424 million loss in the same period last year. The company anticipates subscriber growth in the latter half of the year. Warner Bros. Discovery also saw growth in its streaming services, with HBO, Max, and Discovery+ adding 3.6 million new subscribers, bringing the total to US$103.3 million globally, highlights CNN.