Paramount Television Set to Close

Paramount Global is making some major moves this week, ones that will leave a noticeable mark on its workforce and its future in the television industry. Starting on Tuesday, the company will begin laying off 15% of its U.S. employees, which translates to about 2,000 people. These layoffs are part of a larger restructuring effort that Paramount says is necessary to cut costs and position itself for future growth. The layoffs are expected to continue through the end of this year, though the bulk of the cuts—around 90%—should be done by the end of September.

One of the biggest changes coming out of this restructuring is the closure of Paramount Television Studios (PTVS). According to an internal email from President Nicole Clemens, the studio will be shut down entirely by the end of the week. All of its current series and development projects will be transferred over to CBS Studios, which is also going to see some staff cuts as a result.

Paramount’s co-CEOs explained in a memo that the company has reached what they’re calling an “inflection point.” They say these changes are crucial to securing the company’s financial future, especially as they prepare for a merger with David Ellison’s Skydance Media. Paramount is aiming to save about $500 million annually through this restructuring, which includes layoffs and studio closures.

This news doesn’t come out of the blue—Paramount hinted at these plans during a post-earnings call last week. The company has been struggling with the challenges of a rapidly changing television and streaming landscape. Their cable networks, which include CBS, MTV, and Comedy Central, have taken a hit as more viewers shift to streaming. Just recently, Paramount wrote down the value of its cable networks by nearly $6 billion, signaling how tough things have been in the linear TV market.

The changes at Paramount are significant and reflect a larger trend across the media industry, where companies are consolidating, cutting costs, and trying to find ways to survive in an environment that’s increasingly dominated by digital and streaming platforms.