Paramount Global, the parent company of Hollywood’s renowned film studio, is set to undergo a significant downsizing as it prepares for a merger with Skydance Media and RedBird Capital. The entertainment giant plans to cut around 2,000 employees, which accounts for 15 percent of its domestic staff. The aim is to eliminate redundant functions and streamline teams in order to optimize operations and improve the company’s overall performance.
While this decision is undoubtedly difficult for the affected employees, Paramount’s CEO’s, George Cheeks, Chris McCarthy, and Brian Robbins, have emphasized the necessity of these changes to strengthen the business. In a memo obtained by The Epoch Times, they stated, “The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward.”
The company expects that around 90 percent of the layoffs will be completed by the end of this year. Prior to the downsizing, Paramount Global employed 16,357 people in the U.S. This move is part of a larger merger strategy that is predicted to be finalized in the first half of 2025. Paramount plans to close its Paramount Television Studios in Hollywood, which is responsible for producing popular shows like “Reacher” and “Tom Clancy’s Jack Ryan.” CBS Studios, owned by Paramount’s TV division, will take over production responsibilities for these shows.
The merger involves the acquisition of Paramount Global by a consortium led by Skydance Media and RedBird Capital. The Ellison family, owners of Skydance Media, and RedBird Capital Partners, part of the Skydance Investor Group, will invest over $8 billion in what is being referred to as New Paramount. Additionally, they will acquire National Amusements, Inc., the company that held the controlling stake in Paramount Global.
David Ellison, son of tech billionaire Larry Ellison, will assume the role of CEO in the new company. Jeff Shell, a former NBCUniversal executive, will be the president. In a merger call, Ellison outlined his vision for Paramount’s future, focusing on reorganizing and restructuring the business to prioritize cash flow generation. He also mentioned his intention to implement a “Studio in the Cloud” concept to reduce costs. Ellison’s approach is inspired by his mentor, Steve Jobs, and his belief in the power of technology to inspire art.
Paramount Global was formed in 2019 through the merger of Viacom and CBS. The company encompasses various well-known brands, including Paramount Pictures, BET Networks, MTV, Nickelodeon, Comedy Central, CMT, Showtime, Paramount+ streaming service, and Pluto TV.
Overall, these strategic changes within Paramount Global reflect the evolving nature of the entertainment industry and the company’s commitment to adapting and thriving in an ever-changing landscape. While the downsizing may be challenging for employees, the merger and restructuring efforts aim to position Paramount for long-term success by optimizing operations and leveraging innovative technologies.
