Paramount Global said on Thursday that, in anticipation of its planned merger with Skydance Media. It will let go of 15 per cent of its US workforce and write down the value of its cable television networks by $6 billion.
This merger will affect around 2,000 employees, as Paramount's attempt to cut $500 million in annual costs across the board in preparation for its merger with technology entrepreneur David Ellison's SkyDance.
According to Paramount co-chief executive Chris McCarthy, "redundant functions" in marketing and communications will be eliminated as a result of the layoffs, and manpower in finance, legal, technology, and other support areas would be reduced.
The write-down of Paramount's TV division "is primarily as a result of recent indicators in the linear affiliate marketplace, and the estimated total company market value indicated by the Skydance transactions," according to the company .
The news is the most recent unpleasant indication of the significant changes that are affecting the traditional television industry as viewers quickly abandon cable bundles in favour of streaming options.
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