Paramount Global set to ax more employees after ‘unacceptable’ profit drop

The bosses of Paramount Global warned more layoffs are on the way as part of a $500 million cost cutting plan meant to curb a “simply unacceptable” decline in the media giant’s profitability.

Some 500 employees learned of the grim plans — which also include revamping its Paramount+ streaming service and hiring bankers to sell off unspecified assets — at a Tuesday all-hands meeting with the company’s three co-CEOs Brian Robbins, Chris McCarthy and George Cheeks.

The news comes on the heels of collapsed merger talks earlier this month between media heiress Shari Redstone, Paramount’s controlling shareholder, and Skydance Media, a producer of the “Mission: Impossible” franchise.

Redstone is now reportedly in talks with media mogul Edgar Bronfman Jr., who has partnered with buyout firm Bain & Co. to explore a possible takeover.

While McCarthy said revenue increased by 13% between 2018 and 2023, he said Paramount’s operating income before depreciation and amortization has declined by 61% over the same period — underlining the need for a companywide slimdown.

“Let me be clear: a 61% decline in profits is simply unacceptable,” McCarthy said. “We need to act now to reverse this trend.”