Paramount Global cutting 15% of U.S. workforce, aims to save $500 million, streaming division profitable.

From CNBC: 2024-08-08 17:02:30

Paramount Global is cutting 15% of its U.S. workforce, around 2,000 jobs, as part of a cost-cutting plan ahead of its merger with Skydance Media. The company aims to save $500 million in costs, with job cuts targeted at various departments. Earnings soared due to profitable streaming division, with shares rising 5% after hours.

Second-quarter revenue dropped 11% for Paramount, missing analyst estimates mainly due to declines in TV licensing revenue. Paramount+ revenue grew 46%, but lost 2.8 million customers due to unwinding a partnership. The streaming division turned a profit of $26 million this quarter after a loss last year. Shares have dropped 31% this year.

Furthermore, Paramount reaffirmed its plan to reach U.S. profitability for Paramount+ by 2025. The streaming service has increased prices and decreased content spend. The company’s quarterly profit was aided by the absence of an NFL licensing charge. The company took a $6 billion one-time impairment charge linked to cable network declines after its merger with Skydance.



Read more at CNBC: Paramount Global (PARA) Q2 earnings report 2024