Paramount Global to axe a quarter of US team after rough Q1 earnings

Paramount Global has pivoted towards spin-offs of existing hits including Billions

Paramount Global is cutting around 25% of its team in the US following last week’s rough first-quarter earnings report and subsequent stock price nosedive.

A memo from Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, said the job cuts will be achieved through the “elimination of some units and by streamlining others.”

The company is already in the midst of consolidating its various teams and business units under two main divisions: Studios, which is being created from the ongoing combination of the Showtime and MTV Entertainment Studios teams; and Networks, which will combine nine separate teams into a single group.

Chris McCarthy

MTV News, which had previously sat under the Networks side of the group, is being shuttered completely.

McCarthy called the cuts a “tough yet important strategic realignment of our group.”

“I realise these decisions will be very hard for everyone, most of all those who will be leaving. It’s not something we take lightly,” he said.

“We have some of the most passionate and dedicated team members, who bring their full selves to drive our brands and business forward. This is why it’s so difficult to say goodbye to our friends and colleagues. To those impacted, we deeply appreciate the passion and creativity you have brought every day. I want to thank you for your many contributions.”

The cuts were hinted by Paramount Global execs during last week’s first-quarter earnings call, with exec VP and chief financial officer Naveen Chopra saying the company was “taking a highly disciplined approach to headcount and continuing to find efficiencies there.”

In the first quarter, Paramount Global posted a loss of US$1.23bn, including US$511m in its streaming business, prompting it to cut its dividend to five cents per share, from around 24 cents per share. The results caused the share price to drop by around 30% from US$22.65 to less than US$17 per share.

Cuts have been ongoing at Paramount Global for around seven months, starting with the departure of long-tenured exec David Nevins, who served as chairman and CEO of Paramount Premium Group and chief creative officer of Paramount+ scripted series, in October.

Earlier in the year, Paramount Global eliminated around 120 positions at Showtime. At the time, co-president of entertainment Jana Winograde departed while Gary Levine, who held the same title, shifted to senior creative advisor.

The company has also axed a large number of projects on its development slate and pivoted towards developing multiple spin-offs of existing hits including Billions and Dexter, in addition to expanding Taylor Sheridan’s Yellowstone universe.

In Germany chief commercial officer Till Weidemüller and exec VP of central and Northern Europe and Asia Mark Specht are also leaving Paramount. Neither will be replaced.

Sabine Anger continues to be responsible for direct to consumer and streaming as senior VP for streaming in Northern, Central and Eastern Europe. In this role, she is responsible for Paramount+ and Pluto TV in the region, including Germany, Austria and Switzerland.

Susanne Schildknecht’s role as senior VP for MTV Entertainment (MTVE) will see her lead MTVE across all markets in Europe and the Middle East. Schildknecht is also responsible for the production of German-speaking originals as part of the Paramount Television International Studios organisation.

Lauren Nola is VP of kids and family brands for Northern, Central and Eastern Europe (NCEE), responsible for all brand activities for the group in collaboration with the streaming team in the NCEE region.