Paramount Global will proceed with layoffs that will affect approximately 800 employees, or 3% of its workforce.
The employees will be informed on Tuesday about their "fate".
“These adjustments will help us build on our momentum and execute on our strategic vision for the year ahead — and I firmly believe we have a lot to be excited about,” wrote the company, Bob Bakish.
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Media company Paramount Global owns a variety of assets, including CBS, Paramount Pictures, Pluto TV, Paramount+ and cable networks like Nickelodeon, BET and Comedy Central. The cuts come as the company looks at merger and acquisition options. For example, there have been discussions in the past with Skydance Media and Warner Bros. Discovery.
Paramount Global had warned employees of impending layoffs in an announcement on January 25. Bakish said at the time that Paramount Global needed to “operate as a more agile company and spend less.”
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The cost-cutting seems necessary given the decline in profits from its streaming service Paramount+ , which lost $238 million in the third quarter of 2023.
Impact of layoffs on media companies
Layoffs on such a large scale can have significant implications for the labor. The increased availability of workers can lead to increased competition for available jobs, pressuring workers to accept lower wages or less attractive working conditions.
Also, layoffs at media companies like Paramount Global can have a significant impact on the quality of content they produce. The loss of skilled staff can reduce the company’s ability to produce engaging content. This can lead to more general and less in-depth coverage of issues.
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Furthermore, the pressure to produce more content with fewer resources can lead to an increase in quantity at the expense of quality. This can result in the production of content that is less vetted, less accurate, or less interesting to the audience.
Finally, layoffs can have a psychological impact on employees, increasing uncertainty and fear of job instability. This can lead to reduced productivity and creativity, as employees may be less willing to take risks or invest in new ideas.
Source: www.cnbc.com
