Los Angeles, September 25: Paramount Global has initiated its second phase of layoffs in the United States to increase profitability, reduce costs. The US entertainment giant announced the layoffs last month, and they were said to affect nearly 2,000 employees. The massive job cuts are aimed at restructuring its business and streamlining its operations ahead of the merger with Skydance Media.

Reuters reported that the second phase of Paramount Global layoffs has been announced through an internal memo. The entertainment company has reduced its workforce in line with its efforts to cut the annual cost by USD 500 million and streamline its operations before the merger begins. Paramount Global began laying off employees in August and shared its plans to reduce 15% of its workforce by the end of this year. Paramount Global Layoffs: US Media Giant Cuts Unspecified Jobs in Advertising Division Ahead of Merger With Skydance Media.

Paramount said the job cuts would be implemented in three phases and would affect thousands of employees. The report said that the 90% layoffs were set to be completed after Tuesday. The US media and entertainment giant also shared that its traditional cable television business took a massive hit due to the increased shift of people towards streaming media platforms. 

It said that the value of its cable networks was USD 6 billion last month and was declining. The Paramount Global layoffs are aimed at helping the company save USD 300 million to USD 400 million in the third quarter and improve its profitability. The report does not share the exact numbers of people affected in the second phase. Twitter Layoffs-Affected Employee Wins Legal Battle Against Elon Musk Over Unpaid Severance: Reports.

Last week, it was reported that Paramount Global would also shut down its TV Studio and lay off employees. This action would help the entertainment giant save more money and implement its broader strategy of saving hundreds of millions of dollars. Previously, the entertainment giant had cut jobs from its advertising division.

(The above story first appeared on LatestLY on Sep 25, 2024 12:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).