Paramount Global, the media giant behind iconic brands like CBS, Comedy Central, and MTV, is facing a wave of change as it executes another round of significant layoffs. This move follows a challenging period for traditional media companies, prompting Paramount to prioritize cost-cutting and adjust to the rapidly evolving media landscape.
In a memo to employees, Paramount’s co-CEOs announced the second phase of workforce reductions, expecting to complete 90% of the cuts by the end of the day. The report highlighted that CBS News is among the divisions impacted, with the IBEW union expressing concerns about the layoffs, given its members’ long history of producing CBS broadcasts.
The initiative is part of a broader strategy aimed at accelerating streaming profitability and streamlining the company’s operations. Paramount anticipates a restructuring charge of $300 million to $400 million in the third quarter as a result of the layoffs.
Paramount’s co-CEOs emphasized their commitment to transforming streaming into a profitable venture. “We will continue to aggressively execute on our Strategic Plan which focuses on transforming streaming to accelerate profitability, streamlining our organization — including at least $500 million in annualized cost savings — and improving the balance sheet by growing free cash flow,” they stated in their recently reported second-quarter results.
Despite these efforts, PARA stock has faced challenges, losing over 17% in the past year. Investors looking for exposure to the stock can consider options like the Invesco S&P 500 Equal Weight Communication Services ETF (RSPC) and the Invesco S&P 500 Pure Value ETF (RPV).
As of Tuesday’s trading, PARA shares are up by 0.58%, trading at $10.44.
