Paramount CEO broadcasts layoffs as value pressures, take-private talks construct

Paramount CEO Bob Bakish introduced layoffs on the media firm Thursday, citing a have to “function as a leaner firm and spend much less.”

“Our precedence is to drive earnings development. And we’ll get there by rising our income whereas intently managing prices — a stability that can require each workforce, division and model to be aligned,” Bakish mentioned in a memo to workers.

“The place attainable, we’ll look to develop our shared companies mannequin as we streamline operations. Because it has over the previous few years, this does imply we’ll proceed to cut back our workforce globally,” he added.

Paramount didn’t instantly disclose what number of jobs the corporate would minimize. It additionally plans to cut back worldwide content material spending, Bakish mentioned within the memo.

The corporate reviews quarterly earnings on the finish of February and plans to elaborate on its 2024 technique then.

The cuts come as a variety of firms within the media business and past announce layoffs whereas they push to trim prices. The Los Angeles Occasions, Enterprise Insider and Sports activities Illustrated, amongst others, have minimize jobs in latest days in a tumultuous stretch for media.

The layoffs additionally come as David Ellison’s Skydance Media explores a deal to take Paramount non-public, CNBC reported Wednesday.

Bakish acknowledged challenges dealing with the corporate together with a mushy market, financial volatility and strikes by Hollywood writers and actors that stymied studio manufacturing for a lot of the summer season. He appeared to trace on the acquisition rumors swirling round Paramount.

“Amid all this transformation, it is no shock that Paramount stays a subject of hypothesis. We’re a storied public firm in a intently adopted business,” he mentioned. “However I’ve all the time believed the perfect factor we will do is think about what we will management — execution. Leaning into what’s working, whereas regularly adjusting to present realities.”