Paramount Shutters Paramount TV Studios as Cuts Continue

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Paramount is shuttering its Paramount Television Studios division and transitioning all current PTVS and development projects to CBS Studios, according to an internal memo obtained by ADWEEK.

The closure will affect several PTVS staff, including longtime president Nicole Clemens. The cuts are part of a broader wave of rolling layoffs reshaping the company, which are intended to result in $500 million in cost reductions.

In total, the cuts will affect 15% of the Paramount staff, or roughly 2,000 people, and are expected to conclude by late September.

“To be clear, this is not a decision based on how PTVS performed,” co-chief executive George Cheeks wrote to staff in an email. “This move is the result of significant changes in the TV and streaming marketplace and the need to streamline our company.”

The executive led global kids and family marketing at Paramount+ and Nickelodeon.

PTVS is responsible for many popular television series, including 13 Reasons Why and Reacher, which it produced for Netflix and Amazon Prime Video, respectively.

In addition to PTVS, members of CBS teams are also affected by this round of cuts.

The cuts come amid a period of dramatic transition for Paramount, which agreed to be acquired by Skydance Media for $8 billion in July. Paramount is still in the midst of a go-shop period, during which it can field other buy-out offers, which concludes Aug. 21.

In its second-quarter earnings last week, Paramount reported that its streaming service turned a profit for the first time in its history, alongside Disney, which achieved a similar milestone.

Still, the company faces daunting commercial prospects. Revenue dropped 11% in the last quarter, and it had to accept a write-down on its lucrative linear business, which reduced the value of those assets by $6 billion.

“There is a lot of news to unpack today,” Cheeks wrote. “I know it’s unsettling.”

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Paramount Shutters Paramount TV Studios as Cuts Continue

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