In January 2024, we learnt that Paramount officials were considering slashing hundreds of positions in February as the media firm faced a crossroads.
Deadline has reported that Paramount is firing off 800 staffers in a memo issued today.
“To those with whom we are parting ways, we are incredibly grateful for your hard work and dedication,” Bakish stated in a memo, according to Deadline. “Your talents have helped us advance our mission of unleashing the power of content around the world.”
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The action comes as Shari Redstone’s National Amusements, which owns nearly 80% of Paramount’s voting stock, is reportedly considering selling their stake at auction.
Paramount confronts a slew of issues heading into 2024. The business hopes to return to positive earnings growth in 2024. But is under pressure due to a still-weak ad market and ongoing losses in its streaming ambitions. Paramount+ reported a $238 million operating deficit in just the third quarter. The service is still significantly smaller than the market leaders, with even its free, ad-supported competitor, Pluto, getting more views.
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According to the WSJ, one thing to consider is if Redstone wants to keep owning Paramount or explore other interests.
The WSJ story also mentions that it has carriage partnerships that will expire soon, including Charter’s Spectrum. Which will terminate in the spring. Charter’s carriage agreement with Disney, signed this summer, resulted in the loss of eight channels and the inclusion of Disney+, which is bundled for free for some subscribers. Recently, Paramount secured an agreement with Comcast to keep its networks on Xfinity TV.
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Paramount may undergo additional changes in 2024. With the possibility of the corporation being divided into multiple components, with the cable network, stations, Pluto, and Paramount+ separating from the movie and TV production studios.
A Paramount spokeswoman was unavailable for comment at the time of this writing.
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