Paramount Global chief executive Bob Bakish informed staff in the US earlier this week of the cuts,which he said were necessary to maintain profit growth. News of the job losses came the day after the company’s US television network CBS broadcast.
Paramount owns Network 10 in Australia.Lester Ranby
An internal memo shared with staff in Australia on Thursday morning by Pam Kaufman,president and chief executive of Paramount’s international markets,confirmed the local impact,with affected workers to be notified by the close of business.
“As Bob shared earlier this week,in order to drive earnings growth in 2024,we have had to make some tough but necessary decisions to ensure we continue growing our revenue while streamlining operations and reducing costs,” the memo,seen by this masthead,said.
“I would like to take a moment to thank all those who will be impacted. Your important contributions to our organisation have strengthened our business,and we are grateful for your dedication. These decisions are never easy. I know the changes will be felt across the region,and I encourage you to support one another as we navigate this next phase of our evolution.”
Paramount has been at the centre of multiple takeover talks in recent months,with American media baron Byron Allen making an official approach worth about $22 billion in January,while Bakish discussed a potential merger with Warner Bros Discovery chief David Zaslav in December.
While the global extent of the cuts will be around 800 jobs,the impact in Australia will be minimal,said a local Paramount source speaking anonymously due to the sensitivity of the decision and the fact that affected workers were yet to be notified. The job losses aren’t expected to extend to editorial staff.
“While this is a difficult moment,I want to emphasise that I believe in our global strategy,and I am confident that the Paramount Australia team will continue to drive the business forward to meet our goals across this critical and priority market,” Kaufman said.
Meanwhile,a judge on Wednesday found it was reasonable for Network Ten TV host Lisa Wilkinsonin its defence against Bruce Lehrmann’s defamation case against it and Wilkinson,meaning Paramount could have to pay up to $2 million in additional legal fees.
Lisa Wilkinson was asked about her controversial Logies speech at the Bruce Lehrmann defamation case.
Wilkinson and Ten have clashed over who should foot the bill for her lawyers as they fight the Federal Court defamation suit over an interview with political staffer Brittany Higgins aired in February 2021. Network 10 in 2017 after going into administration.
One of the company’s top global executives,Maria Kyriacou,who oversaw the Australian market as part of her remit as global president of broadcast and studios,exited the company in January after four years,signalling a shift in strategy under Bakish’s direction away from original international content.
Bakish said the shift meant the company would be “focusing more heavily on our Hollywood franchises,films and series,which have mass global appeal”. Paramount is home to films and franchises such asMission Impossible,Top GunandYellowstone.
Locally,Network 10 broadcasts shows such asAustralian Survivor,The TraitorsandMasterchef.Its streaming service Paramount+ released the Australian production ofThe Last King of the Crossin 2023.
The shift could clash with incoming Australian legislation that sets quotas on streaming services to create local content. The legislation is planned to come into effect in the middle of the year. However,it is yet to be finalised by the Albanese government.
In 2023,Kyriacou insisted the company. “Not only are we not shutting down – we are excited,and we’re investing,” said Kaufman in an interview with this masthead. “This is a market where our strategy is strong,and it’s really working.”
While Paramount+ remains one of the fastest-growing streaming services in Australia,it plans to introduce a cheaper advertising-supported tier later this year.
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