Paramount lays off several hundred employees amid linear TV declines and ‘dynamic macro-environment’

Paramount Global will lay off 3.5% of its domestic workforce, which amounts to several hundred jobs, as the media and entertainment company continues to navigate a difficult industrywide decline in linear television.

The majority of the affected employees were notified Tuesday, according to a letter sent Tuesday morning to employees that was obtained by The Times. In addition to the decline in linear TV, the company also cited a “dynamic macro-economic environment” and the continued priority of streaming business investments as the backdrop to these layoffs.

The affected departments were not disclosed.

“We recognize how difficult this is and are very thankful for everyone’s hard work and contributions,” Paramount co-chief executives George Cheeks, Chris McCarthy and Brian Robbins wrote in the letter.  “These changes are necessary to address the environment we are operating in and best position Paramount for success.”

Last year, Paramount paid its co-CEOs a total of $148 million. Ousted Chief Executive Bob Bakish received compensation valued at $87 million.

The layoffs come just one day after Paramount said its chief financial officer, Naveen Chopra, would be resigning at the end of the month. The company said in a regulatory filing that Chopra’s resignation was not the result of disagreement with the company or its board of directors. Chopra is heading to online game company Roblox as its CFO.

Paramount is just one of several studios across Hollywood that are downsizing.

Last week, Walt Disney Co. announced layoffs for several hundred employees in the U.S. and abroad, citing the decline in linear TV. The layoffs largely affected the film and television marketing teams, television publicity, casting and development as well as corporate financial operations.

The move came just three months after the company cut 200 workers, including at ABC News and Disney-owned entertainment networks.

Warner Bros. Discovery also laid off employees from its cable TV channels last week, cutting several dozen positions. On Monday, the media and entertainment company said it would split into two separate firms — one entity that includes the film studio, television production, HBO and HBO Max and DC Studios and the other with cable channels such as CNN and TNT as well as its European over-the-air networks.