On Thursday, the company said its cost-savings plan will include reducing its U.S.-based workforce by approximately 15 percent. The areas hit will be redundant functions within marketing and communications and in finance, legal, technology and other support functions. These actions will take place in the coming weeks and will largely be completed by the end of the year, according to management.
The company is also exploring “potential strategic partnerships” for Paramount+ and is in active discussion with “multiple parties” in an effort to reach sustained profitability on the service. Management said this could include licensing as well as joint ventures or partnerships. Paramount is also reevaluating its portfolio with an eye to improving its balance sheet.
Paramount reported an operating loss of $5.3 billion, after a loss of $250 million a year ago. The company attributed the change to a “goodwill impairment” charge of $5.98 billion for its cable networks reporting unit, which comes amid the estimated company market value for Paramount amid the Skydance offer and a decline in pay TV.
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