In a move aimed at streamlining operations and driving earnings growth, Paramount CEO Bob Bakish announced on Thursday that the media company would be implementing significant cost-cutting measures, including layoffs. The decision comes amidst a challenging period for the industry, marked by economic volatility and a wave of layoffs across various media companies.
Bakish emphasized the need for Paramount to “operate as a leaner company and spend less” in order to achieve its financial goals. He outlined a strategy focused on growing revenue while closely managing costs, which he believes will require alignment across all teams, divisions, and brands within the company.
The CEO also indicated that Paramount would be looking to expand its shared services model as part of the effort to streamline operations. However, he did not disclose the exact number of jobs that would be affected by the layoffs. Additionally, the company plans to reduce international content spending, reflecting a broader effort to optimize its expenditures.
Paramount is set to report its quarterly earnings at the end of February, where it is expected to provide further details on its 2024 strategy. The announcement of layoffs comes at a time when several other media companies, including the Los Angeles Times, Business Insider, and Sports Illustrated, have also announced job cuts.
The news of the layoffs coincides with reports that David Ellison’s Skydance Media is exploring a deal to take Paramount private, adding to the uncertainty surrounding the company’s future. Bakish acknowledged the challenges facing Paramount, including a soft market and disruptions caused by strikes in the entertainment industry. However, he expressed confidence in the company’s ability to navigate these challenges and hinted at focusing on what the company can control amidst the speculation surrounding its future.
As Paramount prepares to navigate a rapidly changing media landscape, the announcement of layoffs and cost-cutting measures reflects a broader trend in the industry as companies seek to adapt to evolving market conditions and position themselves for future growth.
(Source: Deadline | Variety | CNBC)
