Paramount Media Networks Announces Layoffs as MTV News Shuts Down

(L-R) MTV News correspondents Julianne Ross, Gaby Wilson, and Planned Parenthood representative and director of Operations at One Girl, Elaine Paredes, speak on stage during MTV News Election Night: "The People's Playhouse" at MTV Studios in New York City on Nov. 8, 2016. Brad Barket/Getty Images for MTV News

MTV News will be shutting down as Paramount Media Networks announces layoffs, Showtime/MTV Entertainment Studios and Paramount Media Networks President Chris McCarthy announced on May 9.

The layoffs come after months of internal deliberations about integration amid Showtime’s rebranding into Paramount+ With Showtime and will affect 25 percent of employees across the network media groups, with MTV News getting the boot.

In the memo, obtained and published by Variety, McCarthy said that despite Paramount’s “success in streaming, we continue to feel pressure from broader economic headwinds like many of our peers,” and that “senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business.”

Ed Sheeran, winner of Artist of the Year, poses in the press room during the 2017 MTV Video Music Awards at The Forum in Inglewood, Calif., on Aug. 27, 2017. Alberto E. Rodriguez/Getty Images

“As a result, we have made the very hard but necessary decision to reduce our domestic team by approximately 25%,” McCarthy said in the memo.

“This is a tough yet important strategic realignment of our group. Through the elimination of some units and by streamlining others, we will be able to reduce costs and create a more effective approach to our business as we move forward. Today we will notify employees whose positions are being impacted with leaders communicating the news directly to those teams/or individuals. These meetings will be followed by individual 1:1s with our HR partners.”

The layoffs are due to consolidation after Showtime laid off 120 employees while merging into MTV Entertainment Studios as part of the overall Paramount+ With Showtime strategy, according to the company.

The company groups will be divided into two functions: Studios, which will integrate Showtime and MTV Entertainment Studios into one team, and Networks, which will combine nine separate teams into one portfolio group, according to McCarthy’s memo.

MTV News began in 1987 as a weekly news program called “The Week in Rock,” which became a popular choice for younger generations from the 1990s to the present, as a way to not only get the latest music trends but keep updated with general news events as well.

MTV News covered topics from music, entertainment, pop culture, and political issues.

The company’s decision to lay off MTV staff and close the news unit comes amid heavy financial pressures on MTV’s parent company after it had a net loss of $1.1 billion in the first quarter of this year, according to the company.

Vice Media employees also faced layoffs of more than 100 of its roughly 1,500 employees and shut down its Vice World News brand, following years of financial challenges for the once-ascendant media company, according to The Wall Street Journal.

In a memo to staff, CEO Jim Bankoff wrote that the job reductions were “due to the challenging economic environment impacting our business and industry.

“We are experiencing and expect more of the same economic and financial pressures that others in the media and tech industries have encountered,” Bankoff wrote.

“These difficult circumstances prompted us to take other steps over the past few months to reduce our spending. We suspended most new hiring and significantly reduced discretionary spending. While we are not expecting further layoffs at this time, we will continue to assess our outlook, keep tight control on expenses and consider implementing other cost savings measures as needed.”

McCarthy planned to notify employees affected by the layoffs in person on May 9.

“I realize these decisions will be very hard for everyone, most of all, those who will be leaving. It’s not something we take lightly. We have some of the most passionate and dedicated team members, who bring their full selves to drive our brands and business forward. This is why it’s so difficult to say goodbye to our friends and colleagues. To those impacted, we deeply appreciate the passion and creativity you have brought every day. I want to thank you for your many contributions,” McCarthy concluded.

Paramount Media Networks didn’t respond by press time to a request from The Epoch Times for comment.