Paramount Global—the parent company to major broadcasting networks like CBS, Nickelodeon, MTV, and Showtime, among others—reportedly announced it was laying off 800 employees in an internal memo sent out on Feb. 13.
The layoffs represent about 3 percent of the media conglomerate’s workforce, encompassing roughly 24,500 full-time and part-time employees at the close of 2022, per CNBC.
In the memo, Paramount’s chief executive officer, Bob Bakish, allegedly said the layoffs were made to “return the company to earnings growth,” per The New York Times. “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,” Mr. Bakish reportedly wrote.
Twenty CBS News employees received termination notices from the company on Feb. 13, according to Variety. Paramount Global’s supposed decision to lay off staffers occurred two days after CBS broke television viewership records during Super Bowl LVIII, which aired on Feb. 11.
The television broadcasting company also raked in a hefty $7 million for many of its 30-second Super Bowl ads, according to The New York Times, earning CBS about $60 million during the game’s 15-minute overtime period alone, per Sportico. It’s estimated that the company made $635 million in commercial time that was sold leading up to the game.
Trimming Costs
Paramount Global reportedly alluded to the upcoming job cuts in an internal memo sent out on Jan. 25, noting its desire to “operate as a leaner company and spend less,” per CNBC.“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,” Mr. Bakish allegedly wrote.
“Where possible, we’ll look to expand our shared services model as we streamline operations,” he continued. “As it has over the past few years, this does mean we will continue to reduce our workforce globally.”
The company’s streaming service, Paramount+, gained 2.7 million new subscribers, reaching more than 63 million total subscribers that quarter. It also managed to narrow its losses to $238 million, down from $343 million the previous year.
Merger and Acquisition Rumors
Paramount Global has been the subject of recent merger and acquisition speculation. Shari Redstone has reportedly been in talks to sell her controlling stake in National Amusements, Inc., the parent company of Paramount Global.Ms. Redstone inherited the shares from her father, Sumner Redstone—the founder of National Amusements—when he passed away in 2020, per CNBC. Her decision to sell her controlling stake in the company may be attributed to the $200 million due in taxes that arose after she acquired his shares. Ms. Redstone has reportedly deferred the bill until 2034.
A merger between Warner Bros. Discovery and Paramount Global has been rumored. The former’s chief executive officer, David Zaslav, met with Mr. Bakish last fall to discuss a possible deal, per Axios. Meanwhile, Skydance Media, the production company behind several of Paramount’s popular franchises, such as “Mission: Impossible” and “Top Gun,” has expressed interest in acquiring National Amusements.
Businessman Byron Allen also made a $30 billion bid on behalf of his entertainment company, Allen Media Group, to buy Paramount Global’s outstanding shares.
“We believe this $30 billion offer, which includes debt and equity, is the best solution for all of the Paramount Global shareholders, and the bid should be taken seriously and pursued,” a spokesperson for Mr. Allen said in a statement.
