By Denny Jacob
Paramount Global is cutting its U.S.-based staff by 3.5%, a decision that comes during economic uncertainty and yearslong declines in cable subscribers.
"As we navigate the continued industry-wide linear declines and dynamic macro-economic environment, while prioritizing investments in our growing streaming business, we are taking the hard, but necessary steps to further streamline our organization starting this week," said Co-Chief Executive Officers Brian Robbins, George Cheeks, and Christopher McCarthy in a memo to employees.
The company, which is home to CBS, Comedy Central, Nickelodeon and its namesake studio, in May reported higher revenue and subscribers for its Paramount+ streaming service. But television media revenue dropped, which Paramount attributed to it broadcasting the Super Bowl in 2024.
The divergence between streaming services and cable networks is playing out in similar fashion across the industry. Warner Bros. Discovery on Monday said it's splitting itself into two stand-alone publicly traded entertainment companies, separating its HBO Max streaming service, movie studio and TV production business from its cable networks.
Paramount's decision comes as it's preparing to merge with Skydance Media. It's also been discussing a settlement of President Trump's $20 billion lawsuit against its CBS News division over a "60 Minutes" interview with then-Democratic presidential candidate Kamala Harris, but The Wall Street Journal has reported the sides are far apart.
Media and entertainment companies generally are bracing for a potential economic slowdown that might affect their businesses.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
June 10, 2025 08:02 ET (12:02 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.