Paramount to cut 3% of U.S. workforce as it deepens cost-cutting

Company Overview - Paramount Global is reducing its U.S.-based workforce by 3.5%, which equates to several hundred employees, due to challenges from the decline of traditional pay-TV and macroeconomic factors [1] - As of December, Paramount employed approximately 18,600 full- and part-time employees globally before the recent layoffs [5] Layoff Details - The company informed its staff about the layoffs on Tuesday morning through a memo from the CEO's office, indicating that most affected employees would be notified the same day [2] - This round of layoffs follows a previous reduction of 15% in the U.S. workforce initiated in August [3] - The memo also suggested potential future impacts on the workforce outside the U.S. over time [3] Industry Context - The media industry is experiencing widespread layoffs, with similar headcount reductions reported at companies like Disney and Warner Bros. Discovery [4] - The CEOs acknowledged the difficulty of the situation and emphasized that these changes are necessary for the company's success in the current environment [4] Strategic Considerations - Paramount is currently seeking regulatory approval for its proposed merger with Skydance Media, which may be influencing its restructuring efforts [2] - The company's leadership has previously outlined a plan that includes job cuts and reduced spending as part of its strategy moving forward [3]