Jan. 25 (UPI) — Paramount Global CEO Bob Bakish said the company is planning substantial layoffs in a bid to “operate as a leaner company and spend less.”
Bakish made the announcement in an employee memo Thursday. He did not immediately disclose how many jobs would be cut. Paramount also plans to reduce international content spending.
“Our priority is to drive earnings growth,” Bakish said in the memo. “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.
“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.”
Paramount said it plans to elaborate on its cost-cutting strategy during its quarterly earnings report at the end of February.
The layoffs also come as David Ellison’s Skydance Media explores acquiring Paramount Global. Bakish only hinted at the prospect of an acquisition in his memo.
“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,” Bakish 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.”
Bakish also noted the challenges Paramount is facing, including a soft ad market, a volatile economy, writer and actor strikes that delayed multiple projects, and the company’s shift away from traditional TV toward Internet streaming.
While Paramount Global has run a profitable business for decades, it still faces stiff competition in the streaming space from larger players such as Netflix, YouTube and Amazon Prime.