Paramount Global admits ‘sizeable & meaningful’ cuts possible as shares slide 12%

Yellowjackets

Paramount Global is set to make “sizeable” cuts to staff and content, following quarterly results that showed slowing growth.

While Paramount+ added 4.6 million more subscribers in Q3 – taking the streamer to 46 million in total – shares slumped 12% yesterday as the media giant revealed revenues of $6.9bn, missing Wall Street’s predicted $7bn.

Profits fell almost 50% to 39 cents per share, while the TV unit saw revenue drop 5% as advertising declined and pay TV was also hit, with revenues down 5%.

In the subsequent earnings call, CEO Bob Bakish highlighted that planned “efficiencies” could come as soon as Q4, with CFO Naveen Chopra also pointing to concerns around a global recession.

As part of these plans, Showtime Networks, its associated streamer and Paramount TV Studios will be “reorganised” into other parts of the company, Bakish said, with “significant cost reductions” expected.

Showtime chief David Nevins has already revealed he will be leaving the company later this year, while Chopra added that the reorganisation of the Yellowjackets network would allow it to “apply a more global mindset to content and platforms.”

Details of the cuts were not revealed, but Chopra said savings were likely before the end of the year and would be both “meaningful and sizeable”, with “labour and non-labour expenses.”