Kristina Roberts
Paramount Global has just announced that it will lay off about 3.5% of its employees in the United States. This decision comes as the company faces challenges due to the ongoing decline in cable TV subscribers. The announcement was made through an internal memo sent to staff, and it revealed that the layoffs may also affect some employees outside the U.S. in the future.
The memo informing staff about the layoffs was issued on a Tuesday morning, and it came from the offices of the company’s three co‑CEOs: George Cheeks, Chris McCarthy, and Brian Robbins. These reductions are in addition to the 15% workforce cut which Paramount announced last August, marking another significant change in its overall staffing levels.
As of December 31, 2024, Paramount had a total of 18,600 employees. This latest round of layoff brings the company closer to adapting to what leaders describe as a “generational disruption” in the media industry. This disruption refers to the trend of viewers canceling their cable TV subscriptions and switching to streaming services such as Netflix and others. Millions of cable users are leaving traditional TV behind, which is creating pressure on cable networks and media companies like Paramount.
In the memo, the co‑CEOs stated that they were “taking the hard, but necessary steps to further streamline our organization starting this week.” Those words are exactly as they were written in the memo. The company is being open about the rough decisions they are making as part of a plan to reorganize and become more efficient in the years ahead.
The difficulties faced by Paramount are not unique. Across the media world, companies are having to adjust quickly to the changing ways people watch shows and movies. Gone are the days when cable subscriptions were growing. Now, more and more people watch TV exclusively online, and that shift has forced many traditional media companies to rethink their strategies, budgets, and staffing levels. Paramount’s move to cut employees shows how seriously it is taking these changes.
Paramount has also been preparing for a significant merger that could reshape its future. The company proposed merging with Skydance Media in a deal valued at $8.4 billion. Skydance Media is a production company backed by David Ellison, a young billionaire. However, the merger is still waiting for approval from regulators. There is also a legal cloud over the deal: a $10 billion lawsuit was filed by former U.S. President Donald Trump against CBS News. Trump claims that CBS News aired a deceptively edited interview which, he says, favored Vice President Kamala Harris. This lawsuit is one of the factors delaying final approval of the merger.
The media industry is clearly changing fast, and Paramount is taking steps to adapt. Cutting jobs is painful for everyone involved, and even more so when it happens twice in less than a year. But the company sees it as part of preparations for a new era in entertainment where streaming services dominate.
Paramount’s co‑CEOs are leading the charge with this plan to streamline. Their goal is to shape a more agile organization that can thrive during this generational shift. Their memo emphasized the seriousness of the decision but also made it clear that they see this move as necessary for staying competitive.
It’s not easy for anyone involved—employees facing job losses, managers trying to balance costs, or the executives steering the change. Yet this is the kind of transformation many media companies are going through right now. The rise of streaming services has disrupted long-standing business models, and companies like Paramount must adapt quickly or risk falling behind.
Paramount’s workforce stood at 18,600 at the end of last year. That means roughly 651 people will lose their jobs in this most recent cut. Combined with the previous 15% cut last August, the company is reducing its total number of employees greatly over a short time.
Such quick and deep cuts reflect the severity of the situation. Making content and distributing it through cable is no longer enough. Viewers want flexibility—they want to watch what they want, when they want, and how they want it. This change has sparked fierce competition among streaming platforms. Netflix, Disney+, Amazon Prime Video, and others are investing heavily in shows and movies to attract and keep viewers. To keep up, Paramount needs to make more content available online and reduce costs in other areas.
This means Paramount must shift resources. Some parts of the company must shrink, while others—like streaming and digital production—need to grow. The company is working to balance these changes, and its workforce cuts are part of that effort.
Even with these changes, Paramount knows there are still important decisions ahead. Will regulators approve the Skydance merger? What will happen with the lawsuit involving Donald Trump and CBS News? How quickly can Paramount build a stronger streaming service to compete better with others? These are the big questions that the company must face next.
For now, Paramount is moving forward with its plan. The job cuts begin this week. While the news is difficult for those affected, the company believes these steps are essential to reshape its business, reduce costs, and invest more in areas that matter most in a streaming-first world.
Overall, Paramount’s recent moves reflect both the challenges and opportunities in today’s media landscape. The layoffs show how serious the company is about adapting to viewer behavior changes, and the proposed merger highlights how it’s looking to grow stronger in the future. The story of Paramount—like many other media companies—is one of transformation as it tries to find its place in a world where traditional TV is no longer king.
