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Paramount Global Announces Layoffs to Cut Costs Paramount Global Announces Layoffs to Cut Costs

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Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) plans to lay off about 800 employees as stated in an internal memo, following recent reports signaling the imminent layoffs, which led to a surge in its stock.

PARA traded 3.58% lower than the S&P 500, which fell 1.34% at the beginning of the session.

According to an internal memo, CEO Bob Bakish has emphasized the necessity to reduce costs as the company prioritizes earnings growth for 2024.

β€œUnfortunately, streamlining costs entails bidding farewell to some of our valued colleagues across Paramount,” the memo stated.

As of December 31, 2022, Paramount employed approximately 24,500 full- and part-time employees across 37 countries, with 5,800 project-based staff.

Speculations about potential layoffs emerged in late January, with senior executives reportedly given reduction targets that would impact nearly every division, as per a Deadline Hollywood report.

Paramount is set to report its fiscal fourth-quarter earnings on Feb. 28, with analysts expecting the media giant to earn $0.13 per share on revenue of $7.89 billion.

The company is also amid potential merger/acquisition activity, with reports suggesting a bid by private equity firm Apollo Global (NYSE:APO) for National Amusements, the Redstone family company controlling Paramount.

In addition, it was reported in December that Warner Bros. Discovery’s (WBD) CEO David Zaslav held discussions with Paramount (PARA) regarding a potential merger with the owner of Paramount movie studio, CBS, and other TV properties.

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