Paramount Global announces layoffs amid record ad sales and high-rated Super Bowl broadcast
Paramount Global, owner of streaming and cable television networks, revealed plans Tuesday to lay off hundreds of employees as part of a cost-cutting measure to boost revenue. This news comes just days after CBS, a network under Paramount, recorded unprecedented advertising sales and the highest-rated television broadcast of the Super Bowl.
In a memo seen by CNN on Tuesday, CEO Bob Bakish announced the layoffs without specifying the exact number, although sources familiar with the situation said around 800 employees or 3% of the company’s workforce will be affected. Bakish also mentioned that the layoffs will take place globally and that US staff will be notified by the end of the day.
“These adjustments will help us build on our momentum and execute on our strategic vision for the coming year, and I firmly believe we have a lot to be excited about,” Bakish said in the memo.
Contrary to this announcement, reports have circulated that Shari Redstone, the family heir to Paramount’s parent company National Amusements, has been considering selling her stake in the company. There have been discussions of a potential merger with Warner Bros. Discovery, and acquisition offers from David Ellison’s Skydance and RedBird Capital, although Paramount declined to comment.
The layoffs coincide with Paramount’s transition from traditional linear television to streaming, and the recent news that CBS’ broadcast of Super Bowl LVIII had broken ratings records, with a staggering 123.4 million viewers, marking the largest U.S. television audience since the 1969 moon landing. The network also set a new record for advertising sales for the big game.
CEO Bob Bakish emphasized Paramount’s success in a Bloomberg TV interview last Friday, stating, “We set the all-time high for ad sales for a Super Bowl, and it looks like on Sunday we’ll set a historic viewership number with a little luck.”
The media conglomerate’s decision comes alongside other layoffs within the news industry, including cuts at The Los Angeles Times, TIME, and Business Insider, as well as staff at Condé Nast, Forbes, and The New York Daily News staging historic strikes to protest planned cuts.