Supreme Global has started the first wave of Layoffs as it seeks to reduce its U.S. workforce by 15%.
The first of three phases of staff reductions begins today, with 90% of the planned cuts to be completed by the end of September. George Cheeks, Chris McCarthy and Brian Robbins, the three members of the Office of the CEO, explained the details this morning in a memo to employees (read it below).
“The industry continues to evolve and Paramount is at an inflection point where changes must be made to strengthen our business,” the co-CEOs wrote.
“We know that parting ways with teammates whose contributions have been instrumental to our success is incredibly difficult,” they added. “In partnership with our HR leaders, we are committed to providing support to Paramount’s departing employees and to our teams who will need to adjust to these changes.”
The cuts are part of an effort to generate $500 million in annual cost savings. Paramount has implemented multiple rounds of layoffs over the past year as it has faced a number of financial challenges, most notably the impact of its declining cable TV business. Last week, in reporting second-quarter earnings, the company said it would cut $100 million in annual cost savings. suffered a reduction of 6 billion dollars on its cable networks, joining industry peer Warner Bros. Discovery in recognizing the value destruction of that asset class.
Skydance Media is poised to take control of Paramount in a merger expected to be completed in early 2025. David Ellison’s company made multiple overtures but ultimately prevailed with a plan to spend $8 billion on a two-step acquisition, first of controlling shareholder National Amusements Inc. and then a combination with Paramount.
During a call with Wall Street analysts to discuss quarterly results, McCarthy said marketing and communications It would be one of the two areas that would be targeted in the reductions. The remainder will be support functions, including legal, financial and other areas of the company’s administrative operations.
The talk had been increasing internally before official word came in confirming the start of cuts on Aug. 13. This is a momentous month for Paramount, with layoffs beginning after earnings and before the “go-shop” period in Skydance’s proposal expires on Aug. 21. Other bidders have had 45 days to come forward. If no other compelling offer emerges and gains the support of Paramount’s board, the Skydance transaction will proceed to regulatory review.
Here is the full note:
Hello everyone,
In June, we laid out our strategic plan to return Paramount to profitable growth, which includes streamlining the organization and reducing costs by $500 million annually. As we continue to move forward with our plan, we announced on our earnings call last week that we will reduce our U.S. workforce by approximately 15%, focusing on redundant functions and streamlining corporate teams.
This process will be carried out in three phases, starting today and continuing until the end of the year. We expect 90% of these actions to be completed by the end of September.
We know that parting ways with teammates whose contributions have been instrumental to our success is incredibly difficult. In collaboration with our HR leaders, we are committed to providing support to employees leaving Paramount and to our teams who will need to adjust to these changes. During this time, we ask everyone to be mindful of how this news may impact their colleagues and to offer support to those who need it.
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 the direction we will take. We understand that you may have questions about next steps, and while we may not be able to provide you with all the answers right now, we will continue to update you on our progress.
We will be forever grateful for your hard work in delivering results to our audiences and communities.
Better,
George, Chris and Brian