NEW YORK, Aug. 13 (Xinhua) -- Paramount Global is restructuring its TV-production business as part of a cost-cutting effort and what the company said were significant changes in the TV and streaming marketplaces.
Paramount on Tuesday said that Paramount Television Studios was shutting down at the end of the week, and that its sister TV unit -- CBS Studios -- would absorb the production of Paramount shows as a result of the move. CBS Studios produces content for the CBS network, Paramount+ and other platforms.
"For decades, Paramount has been one of the pre-eminent producers of television shows," said The Wall Street Journal in its report about the move. Paramount Television Studios recently produced several hits for streaming services including "13 Reasons Why" for Netflix, "Reacher" for Amazon Prime Video and "Defending Jacob" for Apple TV+.
"Over the past several years, however, the studio has shrunk in size and status -- a victim of industry consolidation and challenges facing its parent company," noted The Journal.
The move is part of a shake-up at Paramount Global that will result in about 15 percent of its U.S. workforce being eliminated, or a cut of approximately 2,000 jobs. Paramount Global parent National Amusements is in the process of being acquired by Skydance Media in a complex deal that would result in the combination of Paramount and Skydance.
In a memo to staff, Paramount Global Co-Chief Executive George Cheeks said the decision isn't based on the performance of the studio, but rather is "the result of significant changes in the TV and streaming marketplace and the need to streamline our company."
