LOS ANGELES, Aug. 13 (Xinhua) -- Media and entertainment conglomerate Paramount Global will begin cutting 15 percent of its total U.S.-based workforce starting Tuesday, the company's leadership said in a memo to employees.
"The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business," Paramount's three co-chief executive officers said in the memo, adding that "while these actions are often difficult, we are confident in our direction forward."
The company's top executive officers stated that the first of the planned three-phase cuts will continue through the end of this year, with 90 percent of these actions to be complete by the end of September.
During a second-quarter earnings conference call last week, the company announced the cuts, which is expected to result in the loss of around 2,000 jobs.
The second-quarter earnings report revealed significant financial challenges for Paramount, which owns CBS, Paramount Pictures and popular cable networks. The company reported a massive operating loss due to a 5.98-billion-U.S.-dollar write-down on the value of its cable TV networks.
This devaluation is linked to Paramount's pending acquisition by Skydance Media, which is expected to close by Sept. 30, 2025.
The job cuts are part of a previously cost-saving plan announced by Paramount's executive officers to reduce annual costs by 500 million dollars ahead of the Skydance merger.
