With the Showtime and MTV Entertainment studios now merged into one studio, and Paramount Media Networks’ nine teams now consolidated into a single portfolio group, the Paramount Global division that houses both units is now laying off 25% of its domestic staff.
The layoffs -- the latest coming out of Paramount's plan to integrate Showtime into a merged Paramount+ Showtime offering -- were announced on Tuesday by Chris McCarthy, president and CEO of the Showtime/MTV Entertainment Studios and Paramount Media Networks division.
In addition, the company is shutting down MTV News, which was launched in the late 1980s as an extension of the iconic brand, and was downsized significantly six years ago. That news first emerged via MTV News employee posts on social media.
About 120 studios employees were already laid off in February as a result of the two studios’ merger, with Showtime staff hardest-hit. Network-side employees are reportedly most heavily affected in this latest round of layoffs.
In announcing the layoffs in an internal memo, McCarthy said that despite Paramount’s success in streaming, the company continues “to feel pressure from broader economic headwinds like many of our peers,” and “senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business.”
“As a result, we have made the very hard but necessary decision to reduce our domestic team by approximately 25%,” McCarthy wrote. “This is a tough yet important strategic realignment of our group. Through the elimination of some units and by streamlining others, we will be able to reduce costs and create a more effective approach to our business as we move forward.”
Last week, Paramount Global reported a loss of $1.1 billion in this year’s first quarter, causing a 25% drop in its stock price.