Paramount executives are considering cutting more than 1,000 jobs early next year as the media company is at a crossroads, according to The Wall Street Journal.
The move comes as Shari Redstone, whose National Amusements owns roughly 80% of the voting share in Paramount, is reportedly discussing a potential deal with Skydance Media.
Paramount faces a myriad of challenges going into 2024. The company is aiming to get back to positive earnings growth in 2024, but is under pressure thanks to a still-weak ad market and continued losses in its streaming ambitions. In the third quarter alone, Paramount+ posted an operating loss of $238 million. The service is also still far smaller than the market leaders, with even its free, ad-supported service, Pluto, attracting more viewers.
A factor in this is whether Redstone wants to continue owning Paramount or pursue other interests, according to the WSJ.
The WSJ report also notes that it has carriage deals that are expiring soon, with Comcast’s ending at the end of this month, and Charter’s ending in the spring. Charter’s carriage deal with Disney, struck this summer, led to the removal of eight channels and the addition of Disney+ bundled for free for some subscribers.
2024 could see further changes for Paramount, with the potential for the company to break into different parts, with the cable network, stations, Pluto and Paramount+ separating from the movie and TV production studios.
A Paramount spokesperson declined to comment.