Although Super Bowl LVIII was the single most-watched broadcast since the 1969 moon landing, the big game network is laying off hundreds of employees just days after the ratings smash.
Paramount, the parent company of CBS, Nickelodeon, MTV and others, is laying off 3% of its global workforce (about 800 employees) to “return the company to earnings growth,” as streaming platforms continue to dominate the entertainment programming.
Employees will be spread across divisions, including CBS, Paramount Pictures, Paramount+ and Nickelodeon, all of which streamed Super Bowl LVIII.
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Employees learned of the cuts via an internal memo from Paramount CEO Bob Bakish, obtained by New York Times.
“While I realize these changes are by no means easy, as I said last month, I am confident that this is the right decision for our future,” Bakish wrote. “These adjustments will help us build on our momentum and realize our strategic vision for the year ahead – and I firmly believe we have a lot to be excited about.”
US employees who were fired were notified by the end of the day yesterday, although international employees may find out in the coming days due to different legalities in each country.
Bob Bakish, president and CEO of Paramount Global, attends the Allen & Co. Media and Technology Conference on Tuesday, July 11, 2023, in Sun Valley, Idaho, United States. David Paul Morris/Bloomberg | Getty Images
He also noted that Sunday’s big game was a “successful event” for the company that “showed the full might of Paramount,” despite months of rumors of takeover bids and a potential merger with Warner Bros. Discovery.
“To those we are parting ways with, we are incredibly grateful for your hard work and dedication,” Bakish wrote. “Your talent has helped us advance our mission to unleash the power of content around the world. We are a better company because of you.”
Paramount reported a strong third quarter of 2023, with revenue growing 38% year-over-year. Paramount+ added 2.7 million subscribers in that quarter. Overall profit also increased, to $295 million from $231 million in the same period last year.
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“We continue to execute on our strategy and prioritize prudent investments in streaming while maximizing earnings from our traditional business,” Bakish said in an earnings release at the time. “Looking ahead, we remain on track to achieve significant company total earnings growth in 2024.”
Paramount is expected to report fourth-quarter 2023 earnings on February 28.
The media company was down just over 41% year over year as of Wednesday afternoon.