Layoffs will be hitting 25% of employees across the Showtime, MTV Entertainment Studios and Paramount Media Networks groups in the U.S. Tuesday, following months of internal deliberations about integration amid Showtime’s rebranding into Paramount+ With Showtime.
Additionally, MTV News — which was significantly affected by layoffs more than five years ago — will be shutting down. Other units, most of which are operations, will be shuttered as well.
In a memo to staff, Showtime/MTV Entertainment Studios and Paramount Media Networks president Chris McCarthy said that, despite Paramount’s “success in streaming, we continue to feel pressure from broader economic headwinds like many of our peers,” and that “senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business.”
“As a result, we have made the very hard but necessary decision to reduce our domestic team by approximately 25%,” McCarthy said. “This is a tough yet important strategic realignment of our group. Through the elimination of some units and by streamlining 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 are being impacted with leaders communicating the news directly to those teams/or individuals. These meetings will be followed by individual 1:1s with our HR partners.”
McCarthy’s group will be consolidated into “two functions”: Studios, encompassing Showtime and MTV Entertainment Studios; and networks, “combining nine separate teams into one portfolio group.” The 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 networks group due to consolidation.
These cuts come four months after Showtime laid off 120 employees while merging into MTV Entertainment Studios as part of the overall Paramount+ With Showtime strategy, just as Showtime co-presidents Gary Levine and Jana Winograde exited their posts.
See McCarthy’s note to staff in full below.
Team,
As we finalize the integration of SHOWTIME and continue to transform our business for the future, we have set 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 — combining nine separate teams into one portfolio group
This combination has resulted in an incredible 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, drove record subscribers across Paramount+ and Showtime and helped Paramount+ lead the industry in new subscriber growth.
However, despite this success in streaming, we continue to feel pressure from broader economic headwinds like many of our peers. To address this, our senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business.
As a result, we have made the very hard but necessary decision to reduce our domestic team by approximately 25%. This is a tough yet important strategic realignment of our group. Through the elimination of some units and by streamlining 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 are being impacted with leaders communicating the news directly to those teams/or individuals. These meetings will be followed by individual 1:1s with our HR partners.
I realize these decisions will be very hard for everyone, most of all, those who will be leaving. It’s not something we take lightly. We have some of the most passionate and dedicated team members, who bring their full selves to drive our brands and business forward. This is why it’s so difficult to say goodbye to our friends and colleagues. To those impacted, 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 done with empathy and respect.
Sincerely,
Chris