Paramount Global is eliminating 3.5% of its U.S. workforce in another round of job cuts, the latest signal of deepening distress within the traditional media industry as audiences continue to migrate away from cable television.
This marks the company’s second major workforce reduction in a year, following a far more sweeping 15% cut in 2024, and comes as Paramount attempts to stabilize its balance sheet and sharpen its focus on streaming.
Although the broader corporate world is in the midst of a wave of AI-induced layoffs—with major firms citing automation and artificial intelligence as reasons for shrinking headcounts—Paramount’s decision appears to be more closely tied to structural shifts in its business model rather than AI replacing jobs. According to internal sources, the reductions are aimed at streamlining operations as revenue from its legacy television businesses continues to shrink.
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“These changes are necessary to address the environment we are operating in and best position Paramount for success,” wrote Paramount’s co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins in a memo to staff.
Old Media, New Pressures
Paramount, which had 18,600 employees globally as of the end of 2024, is one of several legacy media companies now in a second wave of painful downsizing. In recent days, Disney and Warner Bros. Discovery have also cut staff to adapt to the collapsing economics of linear TV. Despite continuing to generate cash, the traditional television model—based on bundled cable subscriptions and advertising—is rapidly being eclipsed by streaming.
This media-wide reset has led Warner Bros. Discovery and Comcast to announce plans to spin off their linear TV units into standalone businesses, essentially severing their ties to a once-core revenue stream now seen as a drag on long-term growth.
Paramount, which owns CBS and MTV among other channels, hasn’t announced a spinoff. Instead, it is attempting to reposition through a proposed merger with Skydance Media—a deal that is now being closely watched not just by investors but also by regulators and political stakeholders, given CBS’s entanglement in a legal dispute involving President Donald Trump and the network’s flagship news magazine, 60 Minutes.
Not an AI Story—This Time
The latest round of job cuts comes as companies across industries have begun pointing to AI technologies as a reason for reducing their workforces. From Big Tech firms like Google and Meta to banks and even media outlets, automation and generative AI tools have started to replace certain roles—particularly in support, administrative, and content production teams.
However, Paramount’s cuts appear to be motivated more by macroeconomic pressure and declining linear revenue than by any direct AI rollout, according to executives familiar with the matter. While the company has invested in streaming innovation, there’s no indication that artificial intelligence played a central role in the latest round of layoffs.
Even so, the timing of the announcement—at a moment when AI is making headlines for reshaping job markets—raises broader questions about how the entertainment industry will evolve as automation capabilities mature.
Leadership Shakeup & Strategic Uncertainty
The restructuring follows a major leadership shakeup. CFO Naveen Chopra has exited to join Roblox, a gaming and social platform. Paramount has appointed Andrew Warren—a longtime advisor to the CEO’s office—as interim finance chief. Meanwhile, the company is also reeling from the recent departures of Wendy McMahon and Bill Owens, two top news executives who reportedly quit over frustrations tied to CBS’s handling of the Trump legal saga.
Paramount executives have emphasized that despite the challenges, the company continues to post streaming success. Recent hits such as Mission: Impossible — The Final Reckoning, MobLand, and the NCAA Tournament have delivered strong performances on Paramount+, the company’s flagship streaming platform.
However, streaming has only recently begun to turn a profit, and with mounting regulatory hurdles for its merger, internal leadership gaps, and the ever-present risk of political interference, Paramount is under pressure to show that it can transition away from its decaying legacy model without losing its creative edge—or its talent.
The company says the layoffs may also eventually impact international staff, pending local laws. In the U.S., most affected workers are being notified this week.
Paramount will reduce its U.S. workforce by 3.5%, affecting several hundred employees, according to an internal memo reviewed by several news outlets. The news comes shortly after reported headcount reductions at rivals Disney and Warner Bros. Discovery. Last June, Paramount announced a plan to cut jobs and reduce spending; in August, the company cut 15% of its U.S. workforce. Paramount’s pursuit of regulatory approval for a proposed merger with Skydance Media, meanwhile, has been held up by a legal battle between CBS and the federal government.