In light of the necessity to “run as a leaner company and spend less,” Paramount CEO Bob Bakish announced layoffs at the media giant on Thursday.
“Our priority is to drive earnings growth. And we’ll get there by growing our revenue while closely managing costs — a balance that will require every team, division and brand to be aligned,” Bakish said in a memo to employees.
“Where possible, we’ll look to expand our shared services model as we streamline operations. As it has over the past few years, this does mean we will continue to reduce our workforce globally,” he added.
Paramount withheld information about the number of positions it planned to eliminate right away. According to Bakish’s memo, there are also plans to cut back on expenditure on foreign content.
The business intends to provide more details on its 2024 strategy when it releases its quarterly earnings at the end of February.
The cuts coincide with a number of media and other organisations announcing layoffs in an effort to reduce expenses. In a turbulent few days for the media, The Los Angeles Times, Business Insider, and Sports Illustrated have all made job cuts.
Bakish recognised the difficulties the company faced, such as a depressed market, unstable economic conditions, and Hollywood writers’ and actors’ strikes that hindered studio production for a significant portion of the summer. He seemed to allude to the acquisition rumours that have been going about Paramount.
“Amid all this change, it’s no surprise that Paramount remains a topic of speculation. We’re a storied public company in a closely followed industry,” he said. “But I have always believed the best thing we can do is concentrate on what we can control — execution. Leaning into what’s working, while continually adjusting to current realities.”
CNBC
