Los Angeles, California — Paramount Global is set to reduce its U.S. workforce by 3.5%, translating to several hundred jobs, amidst ongoing challenges in the media industry. The decision to proceed with layoffs reflects the company’s response to both declining traditional pay-TV subscriptions and broader economic difficulties.

In a memo released to employees on Tuesday, executives including CEO George Cheeks outlined that most affected personnel would be notified by the end of the day. The communication highlighted the necessity of these changes for the company to successfully navigate a turbulent media landscape.

This latest round of layoffs is part of a broader restructuring effort that has unfolded since last year. Last June, the company’s leadership unveiled a strategic plan that indicated a commitment to job cuts and expenditure reduction as essential steps. Following this, in August, Paramount began reducing its workforce by 15% as part of its ongoing efforts to streamline operations.

The current layoffs come at a pivotal time as Paramount also seeks regulatory approval for a proposed merger with Skydance Media. The intertwined nature of these developments signifies the company’s attempt to adapt and grow through consolidation in an ever-evolving market.

The memo from senior leadership acknowledged the challenges posed by this decision, emphasizing gratitude for employees’ hard work and contributions. “These changes are necessary to address the environment we are operating in and best position Paramount for success,” the leadership stated.

The media sector has seen widespread layoffs recently, with companies like Disney and Warner Bros. Discovery also announcing significant workforce reductions. This trend underscores the ongoing pressure as traditional media entities evolve to meet the demands of a digital-first audience.

As of December, Paramount had a global workforce of approximately 18,600 full- and part-time employees. With the current cuts, the company is now tasked with realigning its resources to better focus on emerging opportunities while addressing immediate operational realities.

These layoffs represent not just a response to financial pressures but also a strategic repositioning aimed at reinforcing Paramount’s foothold in the entertainment landscape.