(DailyAnswer.org) – The last few years have been brutal on the media industry, and the latest sign of decline is massive layoffs by Paramount Global, which announced the closing of its TV studio, meaning that thousands would lose their jobs.
On the morning of Tuesday, Aug. 13, Paramount Global announced that it would be shutting down Paramount Television. Staff were informed of the news through a memo sent out by Nicole Clemens, Paramount Global co-CEO and Paramount TV president, who said the studio was drastically impacted by rapid changes in the industry.
According to Clemens, the decision was a “difficult” one to make for the company and comes as part of its “broader restructuring plans.” She said the entire industry was undergoing “a challenging and transformative time” and that the Paramount TV studio was “not immune.” The memo claimed the “past 11 years” brought “insurmountable obstacles” that the studio weathered with “strength, determination,” and “commitment,” as well as “resilience, creativity, and passion.” Clemens said she “could not be prouder” of the Paramount TV team.
The main reason for the shutdown is that the parent company of the studio, National Amusements, was purchased by Skydance Studios and Paramount Global is due to merge with that media company, which has promised to help Paramount with its $14.6 billion debt. Paramount Global, minus Paramount TV, will continue to operate as one of Skydance’s studios.
Paramount Global co-CEO George Cheeks is also stepping down from his position as projects currently under the TV studio are moved to CBS Studios. In a separate memo, he said the shutdown of the studio has nothing to do with its performance and was due to “significant changes” in the marketplace forcing a need to “streamline” the company.
Paramount Global co-CEO Chris McCarthy announced on Thursday, Aug. 8, that the company would cut its workforce down by 15 percent to cut spending by at least $500 million for the following year. The cuts were made mostly in communications, technology, legal, and marketing. McCarthy said the actions would happen over the next few weeks and should be finished by the end of the year.
Copyright 2024, DailyAnswer.org
