Layoffs will reach 25% of employees worldwide show timeand MTV Entertainment Studios Basic Media Networks groups in the US on Tuesday, after months of internal deliberation over the merger amid Showtime’s name change to Paramount+ with Showtime.
in addition to, MTV News – which was greatly affected by layoffs more than five years ago – will be closed. Other units, most of which are operations, will also be closed.
In a note to employees, Showtime/MTV Entertainment Studios president Chris McCarthy and Paramount Media Networks president Chris McCarthy said that despite “Paramount’s success in broadcasting, we continue to feel pressure from broader economic headwinds like many of our peers,” and that “Senior leaders in Human Resources Coordination have worked together over the past several months to determine the optimal organization for the current and future needs of our business.”
“As a result, we have made a very difficult but necessary decision to reduce our home team by approximately 25%,” McCarthy said. “This is a difficult but important strategic adjustment for our group. By eliminating some modules and streamlining others, we will be able to reduce costs and create a more efficient approach to our business as we move forward. Today we will notify employees whose positions are affected that leaders communicate the news directly to those teams/or individuals These meetings will be followed by one-on-one meetings with our HR partners.”
The McCarthy Group would be consolidated into two “functions”: studios, including Showtime and MTV Entertainment Studios; and Networks, “merging nine separate teams into one portfolio group.” Affected Paramount-owned networks include Nick, MTV, Comedy Central, Paramount Network, CMT, Smithsonian, TV Land, Logo and Pop TV.
The majority of the layoffs will be among the network group due to the merger.
The cuts come four months after Showtime laid off 120 employees during its merger into MTV Entertainment Studios as part of its overall Paramount + With Showtime strategy, just as Showtime’s co-presidents, Gary Levin and Jana Winograd, stepped out of their positions.
See McCarthy’s full staff note below.
With the completion of the SHOWTIME incorporation and continuing to transform our business for the future, we have laid a great foundation for continued success by consolidating our group into two functions:
• Studios – Merging SHOWTIME and MTV Entertainment Studios into one powerful studio team
• Networking – Consolidate nine separate teams into a single portfolio group
The combination has resulted in a track record 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, taken together, Attracting record number of subscribers across Paramount+ and Showtime and helping Paramount+ lead the industry in new subscriber growth.
However, despite this streaming success, we continue to feel pressure from broader economic headwinds as do many of our peers. To address this, our senior leaders in coordination with Human Resources have worked together over the past several months to determine the optimal organization for the current and future needs of our business.
As a result, we have made the very difficult but necessary decision to reduce our home team by approximately 25%. This is a difficult but important strategic adjustment for our group. 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. Today, we will notify impacted employees that leaders deliver the news directly to those teams/or individuals. These meetings will be followed by one-on-one meetings with our HR partners.
I understand that these decisions will be very difficult for everyone, and most of all, those who are leaving. It’s not something we take lightly. We have some of the most passionate and dedicated team members, who go out of their way to drive our brands and business forward. This is why it is so difficult to say goodbye to our friends and colleagues. For those affected, we deeply appreciate the passion and creativity you bring each day. I want to thank you for your many contributions.
Our Leadership Team and HR Partners are committed to ensuring that this process is conducted with empathy and respect.
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