Paramount global is cutting 800 staff – about 3 per cent of its workforce – days after its US network CBS broadcast a record-breaking Super Bowl TV audience.
Paramount Global, the owner of Channel 10 and Paramount+, CBS and Nickelodeon, is letting go of 800 staff as part of a cost-cutting drive to boost earnings.
US staff impacted by the cuts have already been informed, but it is not yet clear how many staff in Paramount’s Australian operations will be affected.
Paramount employs 24,500 staff in 37 countries and generates annual revenues of about $30 billion (A$46.5 billion).
In an internal memo seen by B&T, Paramount Global chief executive Bob Bakish said the cost-cutting drive is part of a strategy to “streamline costs” and grow earnings.
“While I realise these changes are in no way easy, as I said last month, I am confident this is the right decision for our future,” he wrote
“These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead – and I firmly believe we have much to be excited about.”
Bakish had previously flagged that redundancies this year were likely in a Town Hall meeting with staff in January.
Earlier this week, CBS Sports’ coverage of the Kansas City Chiefs win over the San Francisco 49ers attracted an average TV audience of 123.4 million viewers, making it the most watched Super Bowl in history.
In spite of the Super Bowl success, the cuts arrive at a challenging period for Paramount Global, with rumours swirling that the business is up for sale.
In May 2023, Paramount Global slashed its quarterly dividends by 79 per cent after its Q1 results fell below analyst expectations.
In Australia, Paramount let go of several senior staff at Network 10 a year ago in marketing, streaming, operations and sales.
However, at its Upfronts event in October local Channel 10 executives struck an optimistic note with a solid content slate and investments in ad tech.
