Paramount Executives Consider Job Cuts as Company Faces Challenges in the Streaming Market

Paramount executives are contemplating significant job cuts in response to mounting challenges in the streaming market. According to reports from The Wall Street Journal, the media company is at a crossroads and may lay off hundreds of employees in February 2024. These job cuts were initially estimated to involve over 1,000 employees but have reportedly been reduced in scale.

Shari Redstone, who holds approximately 80% of the voting share in Paramount through her company National Amusements, is believed to be driving this restructuring effort. The move comes as Paramount faces a difficult road ahead, striving to achieve positive earnings growth this year amidst a weak advertising market and continued losses in its streaming endeavors. In the third quarter alone, Paramount+ experienced a decline in subscribers. Additionally, its free, ad-supported service, Pluto, seems to be outperforming the streaming platform. The WSJ report suggests that Redstone’s continued ownership of Paramount is uncertain, leaving the future of the company in question.

Further complicating matters are the impending expiration of carriage deals, such as Charter‘s Spectrum which is set to end in the spring. A recent deal struck between Charter and Disney resulted in the removal of several channels and the addition of Disney+ to some subscribers’ packages. However, Paramount managed to secure an agreement with Comcast to continue airing its networks on Xfinity TV.

In light of these challenges, Paramount is exploring potential changes in its structure. The company may consider separating its cable network, stations, Pluto, and Paramount+ from its movie and TV production studios. Such a move could lead to a more focused approach in catering to the demands of the evolving streaming landscape.

While Paramount declined to comment on the specific plans, the looming job cuts and potential restructuring highlight the need for the company to adapt to the shifting dynamics of the streaming market.