Last week, Paramount wrote down the value of its cable networks, which include MTV, Nickelodeon and Comedy Central, by nearly $6 billion.
Paramount Global will cut $500 million in costs by the end of the year and aims to have most of it completed by the end of September, according to a management memo issued Tuesday.
Budget cuts have been in the works for weeks, and Paramount’s top leaders indicated during an investor call last week that the company would take between $300 million and $400 million in layoff-related charges that would come primarily from its marketing and communications teams, along with other departments. The company expects to eliminate about 2,000 jobs. Last week, Paramount wrote down the value of its cable networks, which include MTV, Nickelodeon and Comedy Centralat almost $6 billion.
The sale of Paramount to Skydance Media
Paramount’s majority shareholder, National Amusements Inc., has agreed to a sale to Skydance Mediawhich has identified $2 billion in cuts to the media conglomerate. The current $500 million is considered part of that larger figure.
Paramount is one of a number of major U.S. media companies struggling with the migration of one-time TV viewers to streaming video. While the company owns the major CBS television network, home to many of its top-rated sports properties, Most of Paramount’s portfolio is focused on a group of cable networks that only air a few original programs. and have seen the communities that once rallied around them dissipate over the past decade. Last week, Warner Bros. Discovery wrote down the value of its cable properties by $9.1 billion.
“The industry continues to evolve and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in the direction we are taking,” the executives said. “We understand that you may have questions about next steps, and while we may not be able to provide you with all the answers at this time, we will continue to update you on our progress.”
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
