The entertainment giant plans to cut about 2,000 employees to streamline its workforce ahead of a merger.
Paramount Global, the parent company of one of Hollywood’s oldest studios—home to the “Mission: Impossible” franchise and the film “Titanic”—began a massive layoff of its U.S. workforce on Aug. 13.
The entertainment giant announced a plan to cut 15 percent of its domestic staff, about 2,000 employees, to cut redundant functions and streamline teams as it merges with a consortium led by Skydance Media and its private equity backer RedBird Capital.
Paramount’s chief executive officers George Cheeks, Chris McCarthy, and Brian Robbins told employees the changes could be “difficult.”
“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward,” according to a memo obtained by The Epoch Times.
The executives said they expect 90 percent of the layoffs to be completed by the end of the year.
Paramount Global employed 16,357 people in the U.S. before the layoffs, according to company executives.
The company’s multi-billion-dollar merger is expected to close in the first half of 2025, said Robbins.
The company also plans to close its Paramount Television Studios in Hollywood, which produces “Reacher,” “The Spiderwick Chronicles,” “Tom Clancy’s Jack Ryan,” and others. Production will be taken over by CBS Studios, owned and operated by Paramount’s TV division.
Skydance and RedBird purchased Paramount Global last month from Shari Redstone, daughter of Sumner Redstone, who acquired the movie empire in 1994.
The Ellison family—who owns Skydance Media—and RedBird Capital Partners, which is part of the Skydance Investor Group, will invest over $8 billion in what is being called New Paramount and to acquire National Amusements, Inc., the company that held the controlling stake in Paramount Global, according to Skydance executives.
David Ellison, son of billionaire tech founder Larry Ellison of Oracle, will become CEO of the new company. Jeff Shell, a former executive of NBCUniversal, will be its new president.
In a merger call July 8, Ellison described his vision for the future of Paramount.
He also said his idea is to cut costs by creating what he called a “Studio in the Cloud.”
Ellison said he was mentored by Apple Computers Founder Steve Jobs and believes in technology inspiring art.
Paramount Global was created in 2019 through the combination of Viacom and CBS. The company includes Paramount Pictures, BET Networks, MTV, Nickelodeon, Comedy Central, CMT, Showtime, Paramount+ streaming service, and Pluto TV.