The latest news coming out of Paramount Global has sent shockwaves through the business world. The company just announced that it will be cutting 15% of its U.S. workforce, equating to about 2,000 jobs. This move is part of a larger cost-cutting strategy in preparation for its upcoming merger with Skydance Media.
This decision comes as Paramount looks to identify $500 million in cost savings, which is part of a $2 billion synergy plan related to its merger with Skydance. The job cuts will primarily target departments such as marketing, communications, finance, legal, technology, and other support functions within the company.
Interestingly, Paramount recently reported a surprising surge in earnings, with its streaming division turning a profit for the first time. This is a significant milestone for the company, which has been striving to make its direct-to-consumer business profitable.
In the second quarter, Paramount saw a drop in revenue of 11%, missing analyst estimates. This decline was attributed to decreases in licensing, TV advertising, and cable subscription sales. However, Paramount+ revenue grew by 46% year-over-year, driven by subscriber growth and higher prices.
Despite facing challenges, Paramount remains optimistic about the future, reaffirming its goal to achieve U.S. profitability for Paramount+ by 2025. The company has implemented strategies such as raising prices and reducing content spending to improve its financial performance.
Overall, Paramount’s recent developments highlight the evolving landscape of the entertainment industry and how companies are adapting to stay competitive. Stay tuned for more updates on this story and other business news on Extreme Investor Network.