Paramount To Cut 2,000 Jobs, Posts $6B Write-Down

Paramount Global (PARA) wrote down the value of its cable-TV networks by nearly $6 billion, a day after Warner Bros. Discovery (WBD) also took a massive charge, as streaming services like Netflix (NFLX) continue to disrupt traditional networks.

It also announced plans to save at least $500 million in annualized costs, and will cut about 2,000 jobs, or 15% of its U.S. workforce, the owner of CBS, MTV, and Nickelodeon said in its earnings call.

Still, investors welcomed the news of the cuts, with Paramount’s shares rising 5% before the opening bell Friday.

Paramount’s Q2 Sales Drop 11%

Paramount, whose controlling shareholder, Shari Redstone’s National Amusements, struck a deal after months of talks to merge with Skydance Media last month, also reported an 11% year-over-year decline in second-quarter sales to $6.81 billion.

That included a 17% revenue drop in its TV Media unit, which was “primarily driven by fluctuations in licensing revenues.”

Paramount+ Streaming Subscribers Fall

Subscribers of its Paramount+ streaming service also fell by 2.8 million to 68 million during the second quarter, “principally reflecting the planned exit from a hard bundle agreement in South Korea.”

The company said, however, that it is on track for Paramount+ to reach domestic profitability in 2025.