By Jasmine Browley ·Updated August 15, 2024
Paramount‘s plans to layoff 15 percent of its U.S.-based workforce has officially begun.
On August 13, Paramount co-CEOs Chris McCarthy, Brian Robbins and George Cheeks shared in an internal memo that the layoffs are to play out in three phases with first phase kicking off on Tuesday. The rest of the employee cuts will roll out through 2024.
“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business,” the memo read per a report from The Hollywood Reporter. “And while these actions are often difficult, we are confident in our direction forward. We understand that you may have questions about next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress.”
Per the outlet, the company’s C-suite addressed the pending layoffs on a quarterly earnings call, pointing to a $500 million cost savings measure as the culprit for the firings. Subsequently thousands of jobs will be lost.
The full memo read:
Hi Everyone,
In June, we laid out our Strategic Plan to return Paramount to profitable growth, which includes streamlining the organization and cutting costs by $500 million on an annualized basis. As we continue to advance our plan, we announced on our earnings call last week that we will be reducing our US-based workforce by approximately 15%, focusing on redundant functions and streamlining corporate teams.
This process will take place in three phases, starting today and continuing through the end of the year. We expect 90% of these actions to be complete by the end of September
The move is just the latest in what has become a litany of shutterings in Hollywood as the list of film studio layoffs becomes longer.
A+E Networks, Dr. Phil’s network Merit Street Media, Disney and Fox among others others have made significant downsizings this year.
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