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Paramount CEOs identify efficiencies in face of ‘unacceptable’ profit falls

The three CEOs confirmed areas for job cuts have already been identified

Paramount Global’s three co-CEOs addressed the company’s staff at a town hall event on Tuesday.

George Cheeks, CBS president and CEO, Chris McCarthy, president and CEO, Showtime/MTV Entertainment Studios and Paramount Media Networks, and Brian Robbins, president and CEO of Paramount Pictures and Nickelodeon, referred to speculation over the recent merger and acquisitions talks surrounding the company.

“We know what a difficult and disruptive period it has been,”  said Robbins, reading from a prepared statement. “And while we cannot say that the noise will disappear, we are here today to lay out a go-forward plan that can set us up for success no matter what path the company chooses to go down.”

Updating staff, the execs stated that Paramount’s overall revenue had grown 13 per cent between 2018-23 while adjusted operating income has declined by 61 per cent over the period. Referring to the decline as “unacceptable”, McCarthy said, “We need to act now to reverse this trend.”

The statement reiterated plans outlined at a June 4th shareholders’ meeting, aiming to achieve $500 million in annualised cost savings. The three-tiered approach includes transforming its streaming strategy to reverse linear declines, optimising the company’s asset mix – the execs confirmed bankers had already been hired to assist in the process – and modernising the organisation to become more nimble.

Any layoffs will target “duplicative teams and functions across the organisation, real estate, marketing and other corporate overhead categories,” said Cheeks.