Paramount Global has written down the value of its cable TV networks by nearly $6bn and is to cut 15% of its US workforce in a bid to reduce costs.
The company announced the write-down in its second-quarter earnings. The impairment reflects a shrinking audience for Paramount’s cable TV networks such as Nickelodeon, MTV and Comedy Central, which translates to lower advertising revenue.
The announcement came a day after Warner Bros Discovery announced a $9bn write-down on its TV assets.
Paramount’s job reductions are part of its efforts to cut $500m in costs ahead of its merger with Skydance Media. An estimated 2,000 people will be affected.
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In its second-quarter results, Paramount announced that revenue fell 11% to $6.8bn. The television unit, which includes network CBS as well as the company’s cable networks, reported quarterly revenue of nearly $4.3bn, a 17% decline from a year ago.
In more positive news, the company’s streaming business, which includes the Paramount+ subscription service and its free AVOD platform PlutoTV, posted its first quarterly profit. The direct-to-consumer unit reported an operating income of $26m in the second quarter, compared with a loss of $424m a year ago.
“We are on track to reach domestic profitability for Paramount+ in 2025,” the Paramount co-CEOs, George Cheeks, Chris McCarthy and Brian Robbins, said in a joint statement.
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