Paramount Global is undergoing additional restructuring leading up to its expected merger with Skydance Media in 2025.
The media conglomerate is integrating the group that handles distribution for the Paramount+ and Pluto TV streaming services with its U.S. TV networks distribution teams to “create one unified distribution team that is optimized for growth across our portfolio,” Ray Hopkins, president of U.S. networks distribution at Paramount, wrote in a memo to staff Wednesday.
The move will result in a “handful” of layoffs, according to Hopkins’ memo. A Paramount rep declined to provide additional details.
“This strategic alignment better reflects the current marketplace and positions our team, business, and partners for continued success as we set out to achieve our goals in 2025 and beyond,” Hopkins wrote. “Consequently, we are having to part ways with a handful of talented colleagues and friends. While necessary, these decisions were not made easily, and we want to sincerely thank the impacted team members for their valued contributions to our organization and company.”
In October, Paramount expanded Hopkins’ duties to now include streaming partnerships and distribution. With that change, Jeff Shultz, chief strategy officer and chief business development officer of Paramount Global’s streaming division, is exiting the company at the end of 2024. The company’s streaming distribution and business development team now reports up to Hopkins.
Hopkins oversees Paramount’s domestic content distribution strategy, partnerships and agreements with video providers and digital platforms across broadcast, cable and streaming brands, including CBS, BET, Comedy Central, MTV, Nickelodeon, Paramount+ and Pluto TV. He also is responsible for all distribution for the CBS Television Network to more than 40 affiliated TV station groups across the country.
Through the summer and fall, Paramount has made layoffs and implemented restructuring aimed at cutting 15% of its U.S. headcount, affecting about 2,000 employees. The cutbacks are part of efforts to slash $500 million in annual costs.
The cost-cutting targets of the Skydance team have been even more aggressive. Jeff Shell, set to become president of the combined company, has said Skydance, working with consulting firm Bain & Co., is aiming to achieve at least $2 billion in annualized cost synergies at Paramount.
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