Paramount Global is moving forward with its highly-anticipated plan to reduce its workforce, as the company has officially begun laying off employees in the United States. A spokesperson for the company confirmed this development to The Epoch Times.
The staff cuts will be carried out in three phases, commencing on August 13 and continuing until the end of the year. According to the spokesperson, once the reductions are complete, 15 percent of Paramount’s workforce in the United States will be let go.
In the three-month period ending on June 30, 2024, Paramount reported a decline in revenue of 11 percent. The company’s TV networks experienced a 17 percent decrease in revenue. However, Paramount’s streaming business demonstrated promise, turning a profit for the first time and achieving a 13 percent increase in revenue for the quarter.
Paramount suffered an operating loss of $5.32 billion in the quarter. A significant portion of this loss can be attributed to a substantial $5.98 billion goodwill impairment charge on its cable networks. This decision recognizes the decreasing value of this asset class as consumers increasingly opt for streaming services.
Overall, Paramount incurred a net loss of $5.4 billion during the period, leaving the company in a staggering $5.97 billion deficit for the first half of 2024.
Shares of Paramount, which owns prominent media brands such as CBS, MTV, and Comedy Central, remained relatively unchanged in midday trading on August 13.