Paramount to cut 15 percent of US workforce. . This is the following a total revenue fell to $6.81 billion from an expected $7.21 billion. The cuts will affect about 3,000 people.
“The industry continues to evolve and Paramount is at an inflection point where changes must be made to strengthen our business,” company CEOs said in a memo to employees.
Paramount representatives say the layoffs will take place in three phases, with layoffs beginning today and 90 percent of all layoffs to be completed by the end of September. The layoffs will primarily affect marketing and communications staff, although the company’s legal and financial arms will also face cuts.
Already first class rebounded in February, and that was after a three percent increase in revenue growth, mostly attributed to the broadcasting and film business. Thus, a three percent increase in revenue leads to a three percent reduction in Paramount’s workforce, and a lack of revenue expectations of about four percent causes the company to lay off 15 percent of its employees. Workers can’t rest.
All of these cuts are likely being used to clear the runway for the impending merger with Skydance. There was a merger and will soon go through the regulatory review process. Paramount for streaming service and of course for reasons that make a lot of sense to corporate executives but not to ordinary people.
