The layoffs will affect 25% of employees worldwide Show timeMTV Entertainment Studios and Supreme Media Networks groups in the US on Tuesday, after months of internal deliberations over integration amid Showtime’s rebranding to Paramount+ with Showtime.
Besides, mtv news —which was significantly affected by layoffs more than five years ago—will close. Other units, most of which are operations, will also close.
In a memo to staff, Showtime/MTV Entertainment Studios and Paramount Media Networks president Chris McCarthy said that despite Paramount’s «broadcast success, we continue to feel pressure from broader economic headwinds as many of our peers,» and that «senior leaders in coordination with HR have been working together for the past few months to determine the optimal organization for our current and future business needs.»
“As a result, we have made the very difficult but necessary decision to reduce our national team by approximately 25%,” McCarthy said. “This is a difficult but important strategic realignment of our group. Through the elimination of some units and the rationalization of others, we will be able to reduce costs and create a more effective approach to our business as we move forward. Today we will notify employees whose positions will be affected, and leaders will communicate the news directly to those teams or individuals. These meetings will be followed by individual 1:1 meetings with our HR partners.”
McCarthy’s group will be consolidated into “two functions”: Studios, which encompasses Showtime and MTV Entertainment Studios; and networking, «combining nine separate pieces of equipment into one portfolio group.» The affected Paramount-owned networks include Nick, MTV, Comedy Central, Paramount Network, CMT, Smithsonian, TV Land, Logo and Pop TV.
Most of the layoffs will be within the networking group due to consolidation.
These cuts come four months after Showtime laid off 120 employees while merging with MTV Entertainment Studios as part of the overall Paramount+ With Showtime strategy, just as Showtime co-chairs Gary Levine and Jana Winograde left their posts.
See McCarthy’s full note to staff below.
Equipment,
As we finalize the SHOWTIME integration and continue to transform our business for the future, we have laid a great foundation for continued success by consolidating our group into two functions:
• Studios: integrating SHOWTIME and MTV Entertainment Studios into one powerful studio team
• Networks: Combination of nine separate computers into one portfolio group
This combination has resulted in an incredible run of hits including Yellowstone, 1883, Tulsa King, South Park, The Challenge, Teen Wolf, 1923, Drag Race, Mayor of Kingstown, Your Honor, George & Tammy, and Yellowjackets, which, together , , achieved record subscribers on Paramount+ and Showtime and helped Paramount+ lead the industry in new subscriber growth.
Despite this success in streaming, however, we continue to feel pressure from broader economic headwinds like many of our peers. To address this, our senior leaders in coordination with Human Resources have been working together for the past few months to determine the optimal organization for our business’ current and future needs.
As a result, we have made the very tough but necessary decision to reduce our national team by approximately 25%. This is a difficult but important strategic realignment of our group. Through the elimination of some units and the rationalization of others, we will be able to reduce costs and create a more effective approach to our business as we move forward. Today we will notify employees whose positions will be affected, and leaders will communicate the news directly to those teams or individuals. These meetings will be followed by individual 1:1 meetings with our HR partners.
I realize these decisions will be very difficult for everyone, especially those who will leave. It is not something we take lightly. We have some of the most passionate and dedicated team members, who bring their entire selves to driving our brands and businesses forward. That is why it is so difficult to say goodbye to our friends and colleagues. To those affected, we deeply appreciate the passion and creativity you have brought every day. I want to thank you for your many contributions.
Our leadership team and HR partners are committed to ensuring this process is conducted with empathy and respect.
Sincerely,
chris