Paramount begins major layoffs ahead of Skydance merger

As a long-time Paramount Global employee who has seen the company evolve over the years, I must say that the recent staff cuts come as a heavy blow. I’ve been here through the golden days of cable TV and the rise of streaming, and it’s disheartening to see our once-great channels becoming increasingly irrelevant.

On Tuesday, Paramount Global announced significant layoffs, intending to reduce its workforce by approximately 2,000 employees by the end of the year. This decision is part of their preparations for a change in corporate leadership.

In a move aimed at cutting annual expenses by half a billion dollars, Company heads disclosed last week their intention to decrease the U.S. workforce at Paramount by 15%. Starting from today and extending until the end of this year, those employees who will be impacted by this decision will be notified in three separate phases.

“According to a memo sent out early Tuesday morning by co-CEOs Brian Robbins, Chris McCarthy, and George Cheeks, we anticipate that about 90% of these actions will be finished by the end of September.”

For a number of years, the company, made up of television networks such as CBS, MTV, Nickelodeon, Comedy Central, and the legendary Paramount Pictures film studio, has been facing difficulties. This is due to the loosening of the cable TV package, which has gradually weakened its primary source of income: fees for cable programming. As time went on, the company’s channels, once prominent in the industry, have grown less significant to younger audiences.

Over the last year, with the company’s value steadily declining, Shari Redstone, the major shareholder, decided it was time to part ways with a firm that her family had managed for nearly 35 years. Last month, a consortium headed by tech heir David Ellison reached an $8-billion agreement with Redstone and other board members to acquire the struggling company.

In the first half of next year, a group consisting of Ellison’s Skydance Media, RedBird Capital Partners, and Larry Ellison, co-founder of Oracle Corp. (and Ellison’s father), are set to take over control.

Ellison’s suggested acquisition of Paramount involves a two-part plan. Initially, his team intends to purchase the Redstone family’s controlling firm, National Amusements Inc., allowing them to step away from the film industry after nearly a century. Sumner Redstone obtained the company (originally Viacom) in 1987 and later incorporated Paramount Pictures into it seven years afterwards.

The ongoing Skydance agreement is set to allocate approximately $2.4 billion for the acquisition of National Amusements. Upon settling outstanding debts, the Redstone family is estimated to receive around $1.7 billion, as reported by reliable sources.

Last week, I was informed by Paramount about a significant adjustment to their financial records – a whopping $6 billion write-off on their cable television networks sector. This latest move underscores the challenging reality facing Hollywood as it grapples with the continued decline of the conventional TV industry.

In their recent memo, Robbins, McCarthy, and Cheeks stated that the industry is constantly changing, and Paramount finds itself at a critical juncture where adjustments are necessary to fortify our operations. Although such changes can be challenging, they expressed confidence in the path we are choosing to take.

As a seasoned employee at Paramount, I have weathered many storms over the years. However, this year has been particularly challenging due to the corporate uncertainty that has pervaded our organization. Despite the slow-moving sale process, we were taken aback when the company’s long-time leader, Bob Bakish, was replaced by a new group. But any moment of relief was fleeting. It seems like we are constantly navigating uncharted waters in this ever-changing environment. As someone who has been with Paramount for many years, I can’t help but feel a sense of unease about the future and what changes may come next.

In June, Cheeks, McCarthy and Robbins signaled that deep cost cutting was imminent.

As a die-hard film enthusiast, I find myself grappling with the recent layoff announcements from CBS, which coincides with their preparation for the rollout of their fresh fall TV lineup. It’s no secret that the movie industry is battling to stay afloat in these challenging times, and CBS seems to be feeling the strain as well.

As a film enthusiast, I can truly relate when I say, “It’s never easy to bid farewell to fellow cinematographers whose artistry has significantly contributed to our box office triumphs.”

Read More

• ZEX PREDICTION. ZEX cryptocurrency
• CRV PREDICTION. CRV cryptocurrency
• UNI PREDICTION. UNI cryptocurrency
• G PREDICTION. G cryptocurrency
• CANTO PREDICTION. CANTO cryptocurrency
• KAVA PREDICTION. KAVA cryptocurrency
• AMP PREDICTION. AMP cryptocurrency
• NYAN PREDICTION. NYAN cryptocurrency
• No Man’s Sky first Worlds update overhauls planet technology
• Jim Crockett Era wrestling documentary “When Giants Walked Here” to air on PBS

2024-08-13 17:31