Paramount Global Begins “Phase Two” of Plan To Axe 2,000 Jobs

Paramount Global, the owner of Australia’s Network 10 and Paramount+, which is now controlled by Oracle co-founder Larry Ellison, has implemented phase two of its company wide layoffs as it seeks to undertake deep cost cuts.

On Tuesday, Paramount’s co-CEOs George Cheeks, Chris McCarthy and Brian Robbins issued a memo to employees that “90 per cent of these reductions will be complete” by the end of the day.

“Like the entire media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses,” the CEOs said.

“Days like today are never easy. It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions.”

The memo comes as the company’s executives announced a plan last month to cut 15 per cent of its US staff – amounting to around 2,000 jobs – in order to achieve $500 million (A$724.86 million) in cost savings.

The first round of those layoffs – which included the closure of Paramount TV Studios – took place shortly after the announcement, with the co-CEOs telling staff that the cuts would happen in three phases. Tuesday’s announcement was phase two of that plan.

It is unclear when the final 10 per cent of the cuts will be implemented, but they will likely happen before the end of 2024, according to The New York Post.

Sources have hinted that CBS News will be impacted by the latest cuts — and that the Washington, DC, bureau will likely be impacted after the 2024 presidential election, following the network’s decision to move “CBS Evening News” from the country’s capital to New York.

The cuts come as Larry’s son, David’s Skydance Media along with other investors complete their purchase of the Shari Redstone family’s interest in Paramount Global.

David’s proposal included Redstone’s National Amusements and allows control of Paramount for more than $8 billion (A$11.88 billion).

David will play a prominent role in the new company as Paramount’s chairman and chief executive officer, and will reportedly have operational control of the business.