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.

“Unfortunately, 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.