New York: Paramount is set to reduce its U.S. workforce by 15 percent, equivalent to approximately 2,000 jobs, as part of a broader cost-cutting strategy in preparation for its merger with Skydance Media. The company has pinpointed 500 million dollars in cost savings, which includes these job cuts, contributing to the 2 billion dollars in synergies anticipated from the merger.
The layoffs, slated to begin in the coming weeks and wrap up by year-end, will primarily affect employees in the marketing, communications, finance, legal, technology, and other support departments. The announcement was made during Paramount’s earnings conference call on Thursday.
Last month, Paramount agreed to merge with Skydance Media. The deal includes a 45-day go-shop period, during which a special committee of Paramount’s board can explore alternative buyers. This period ends later this month.
Despite the upcoming layoffs, Paramount reported strong earnings, driven by an unexpected profit in its streaming division—the first time the company’s direct-to-consumer business has been profitable. Following the earnings report, Paramount’s shares rose by over 5 percent in after-hours trading on Thursday.
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