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Paramount Global on Tuesday began what it called “phase two” of its plan to cut costs by eliminating 15% of its staff in the U.S.
The company is in the process of being acquired by Skydance Media, but the three-man office of the CEO has already initiated its plan to reduce expenses by $500 million. Skydance has plans for additional cost savings.
The first round of staff cuts took place in August. The CEOs, George Cheeks, Chris McCarthy and Brian Robbins, said that after this round 90% of the planned staff reductions will be complete.
On the company’s second-quarter earnings call, McCarthy said layoffs would focus on two areas: ”First, redundant functions within marketing and communications. Second, streamlining our corporate structure, reducing our head count in finance, legal, technology and other support functions.“
The company isn’t breaking out how many people are being impacted by each round of layoffs, but by the end of the year, the company expects to have reduced its U.S. headcount by about 2,000.
“Like the entire media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses,” the CEOs said in their memo Tuesday. “In order to set Paramount up for continued success, we are taking these actions, and after today, 90% of these reductions will be complete.
“Days like today are never easy. It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions,” the CEOs said.
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