Paramount Global is cutting around 25% of its US-based team across Showtime/MTV Entertainment Studios and Paramount Media Networks. Additionally, MTV News is to be shut down, while other units, most of which are operations, will be shuttered as well.
As it finalizes the integration of Showtime and continues to transform its business for the future, Paramount Global announced that it will be consolidating its group into two functions: Studios, integrating Showtime and MTV Entertainment Studios into one studio team; and Networks, combining nine separate teams into one portfolio group.
According to the group, this combination has resulted in a track record of hits including “Yellowstone,” “1883,” “Tulsa King,” “South Park,” “The Challenge,” “Teen Wolf,” “1923,” “Drag Race,” “Mayor of Kingstown,” “Your Honor,” “George & Tammy,” and “Yellowjackets” – which, taken together, drove record subscribers across Paramount+ and Showtime.
“However, despite this success in streaming, we continue to feel pressure from broader economic headwinds like many of our peers. To address this, our senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business,” said Chris McCarthy, President and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, in a memo to staff.
“As a result, we have made the very hard but necessary decision to reduce our domestic team by approximately 25%. This is a tough yet important strategic realignment of our group. Through the elimination of some units and by streamlining others, we will be able to reduce costs and create a more effective approach to our business as we move forward,” McCarthy added.
These latest cuts follow the exit of around 120 staff in February as Showtime is integrated into the Paramount+ streaming service and its team merged into MTV Entertainment Studios. It also follows Paramount’s first quarter financial report last week, in which the media giant posted a US$1.12 billion revenue decline, with streaming losses climbing to US$511 million, leading to a share price drop of more than 28%.
“I realize these decisions will be very hard for everyone, most of all, those who will be leaving. It’s not something we take lightly. We have some of the most passionate and dedicated team members, who bring their full selves to drive our brands and business forward. This is why it is so difficult to say goodbye to our friends and colleagues. To those impacted, we deeply appreciate the passion and creativity you have brought every day. I want to thank you for your many contributions,” McCarthy concluded.
Through the elimination of some units and by streamlining others, we will be able to reduce costs and create a more effective approach to our business as we move forward.” Chris McCarthy President and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks