Paramount Corporation (PARA) is reportedly cutting 25% of its local cable network staff and shutting down its long-running MTV News division after 36 years on the air.
Nine teams will be combined into one team, according to bloombergwhich published the news for the first time. Employees were notified of the cuts on Tuesday. The company did not respond to Yahoo Finance’s request for comment on the report.
The update comes after the media company cut its dividend and released disappointing quarterly earnings last week. Formerly Paramount Unveiling the restructuring plan Which brings together Showtime and MTV Entertainment Studios. company that too announce It will combine Paramount+ and Showtime streaming services into a single product to take on larger competitors, and is eyeing greater integration between its cable TV and broadcast offerings amid rising cord-cutting trends.
Paramount shares fell 5.9% on Wednesday. Shares rebounded slightly to close the day down more than 4%.
Chris McCarthy, president of Showtime/MTV Entertainment Studios and president of Paramount Media Networks, wrote in an internal memo published by the company. Hollywood Reporter. “By eliminating some units and streamlining others, we will be able to reduce costs and create a more efficient approach to our business as we move forward.”
McCarthy added that despite the success of series like “Yellowstone,” “Dexter,” “The Billions” and “Yellow Jackets,” which helped propel Paramount+’s global subscriber count to 60 million, the company continues to “[s] To feel the pressure from the broader economic headwinds as many of our peers.”
The media giant reported a direct-to-consumer loss of $511 million in the first quarter, compared to a loss of $456 million in the prior-year period.
Advertising within the company’s TV media unit fell 11% year-over-year in the first quarter after declining 7% in the fourth quarter. Management maintained that the second half of the year will see improvements in the advertising market.
Paramount reported Quarterly results Last week, it was unexpected in both the top and bottom earnings as the company continues to battle advertising headwinds and larger losses within its broadcast division.
Paramount also updated its dividend policy, lowering its quarterly cash dividend to $0.05 per share from $0.24 per share. Shares fell nearly 30% after the announcement.
Warren Buffett, a 15.3 percent shareholder in Paramount, pointed directly to the cut during Berkshire Hathaway’s annual shareholder meeting on Saturday, telling the audience, “It’s not good news when any company cuts its dividend so dramatically.”
Shari Redstone is currently the non-executive chairman of Paramount Global, as well as the president of her family’s holding company, National Amusements, which controls the company through its Class A shares.
Alexandra Channel He is a senior correspondent at Yahoo Finance. Follow her on Twitter aliecanal8193 and email it to [email protected]
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