Paramount has initiated layoffs as part of a comprehensive restructuring aimed at positioning the company for sustainable long-term growth, with approximately 2,000 employees expected to be laid off during this transition.
The job cuts follow the launch of a “new Paramount” earlier this year and affect multiple departments across the organization, as the 2,000 employees represent roughly 10% of Paramount’s workforce, per The Associated Press.
In a memo to employees, Paramount chairman and CEO David Ellison, who pushed for the “new Paramount” terminology, said the company wants to be “as open and direct as possible about the reasons behind these changes.”
“In some areas, we are addressing redundancies that have emerged across the organization. In others, we are phasing out roles that are no longer aligned with our evolving priorities and the new structure designed to strengthen our focus on growth,” stated the memo, per Axios.
Ellison emphasized in the memo that the decisions, while difficult, are intended to ensure the company’s future success, writing that the cuts are “part of that process” required to stabilize the company.
“These decisions are never made lightly, especially given their effect on our colleagues who have made meaningful contributions to the company,” he added, as reported by The AP.
These layoffs come as many companies have begun reducing their workforce, with Target recently announcing plans to eliminate 1,800 corporate roles, resulting in the firing of roughly 1,000 employees and the ending of another 800 job openings, as previously reported by The Dallas Express.
Amazon has also confirmed plans to lay off roughly 14,000 workers to “reduce bureaucracy” and become more efficient, citing artificial intelligence (AI) as a major driver of the decision.
Although not every company has committed to using AI, many industries are bracing for the effects of the breakthrough technology.
As previously reported by DX, an early-October Senate report stated that AI is expected to replace nearly 100 million jobs in the U.S. over the next decade.