Paramount Global (NASDAQ:PARA) is axing around 800 jobs or around 3% of its workforce as it sets its sights on returning to profit growth amid a wave of cost-cutting, reports revealed.
It is expected to affect both workers based in the United States, who will be told on Tuesday, and those in international offices, according to a memo from chief executive officer Bob Bakish to employees.
Reports of the job cuts come just days after the media conglomerate's subsidiaries CBS and Nickelodeon hosted a record-breaking Super Bowl, with advertisers reported to have spent US$7 million for 30-second slots.
More than 120 million US viewers were reported to have tuned into the NFL final between Kansas City Chiefs and San Francisco 49ers, making it the most-watched broadcast since the Moon landing.
“While I realize these changes are in no way easy … I am confident this is the right decision for our future,” Bakish told employees in the memo.
“These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead – and I firmly believe we have much to be excited about.”
Paramount Global (NASDAQ:PARA) owns broadcasters such as Comedy Central, MTV, and Britain’s Channel 5, while also having launched several streaming platforms.
Headwinds continue to plague the media industry, with major studios such as Paramount being forced to contend with the rise of streaming, weakness in advertising and lower consumer spending.
Therefore, Paramount continues to tighten its ship, and along with the job cuts, the company said it is refocusing its aim to create “powerful, resonant franchises, films and series”.