Paramount Pictures is undergoing significant changes as CEO David Ellison aims to reposition the company and allocate financial resources towards growth opportunities. The move, which is expected to impact about 1,000 jobs, is aimed at streamlining the organization and phasing out roles that are no longer aligned with the evolving priorities of the company.
Ellison announced the cuts in a memo to staff on Wednesday morning, stating that the changes are necessary for long-term success. He explained that redundancies have emerged across the organization and certain roles need to be phased out as the company adopts its new structure designed to strengthen its focus on growth.
This decision comes after Ellison took over the company in August, where he has been working to familiarize himself with Paramount’s workings and allocate resources efficiently. The CEO plans to invest in the company, including a $7.7 billion deal for UFC rights, film rights for the Call of Duty video game franchise, and a deal with the Duffer brothers.
The move is expected to be closely watched by investors as Ellison prepares for his first earnings call on November 10. The executive has stated that he plans to exceed previously announced synergies and invest significantly in growth businesses, with the goal of long-term value.
In response to the layoffs, Paramount is providing support to affected employees, including details on benefits and transition services, which can be directed to HR for more information.
Source: https://www.hollywoodreporter.com/business/business-news/major-paramount-layoffs-begin-david-ellison-1236409846