Paramount said on Thursday that its sales for the second quarter fell by 11%.
In the upcoming weeks, Paramount Global plans to let off roughly 15% of its US employees, business executives revealed during a Thursday earnings call.
The action precedes the movie studio’s intended merger with Skydance Media, which was revealed in July and represented a significant advancement following its co-production of the 2022 Tom Cruise blockbuster “Top Gun: Maverick” with Paramount.
The company’s attempts to accomplish cost reductions that Paramount had previously recognized are reflected in the layoffs, according to Chris McCarthy, head of Paramount Media Networks and Showtime/MTV Entertainment Studios.
Prior to this, Skydance had discovered $2 billion in possible Paramount cost reductions.
McCarthy stated on the call that the company’s primary goals are to reduce staff in finance, legal, technology, and other support activities and improve marketing and communications functions.
“These actions will take place in the coming weeks and will largely be completed by the end of the year,” he added.
US media reports state that this would entail roughly 2,000 jobs.
Under the terms of the merger agreement between Paramount and Skydance, a special committee of Paramount’s board of directors may examine additional proposals to acquire or combine with the business for 45 days.
Later on in the month, this phase comes to an end.
After hours of trading, we saw a 5.3% increase in Paramount shares.
Additionally, Paramount said on Thursday that its sales for the second quarter fell by 11%, falling short of analyst projections.
In addition, it incurred an impairment charge of $6 billion for its cable networks.
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