Paramount begins job cuts as traditional TV market languishes

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Paramount Global began laying off staff Tuesday after the entertainment company said last week that it planned to slash 15 per cent of its U.S.-based workforce, amounting to roughly 2,000 positions.

Matthew Dolgin, senior equity analyst at Morningstar Research, joins BNN Bloomberg to discuss Paramount's placement among streaming giants.

-- In an internal memo viewed by Bloomberg, the company’s three co-chief executive officers told staff that the job cuts would take place in three phases and continue throughout the rest of the year. They said they expect 90% of the layoffs to be completed by the end of September. “The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business,” the co-CEOs said in the memo.

While reporting second-quarter financial results last week, co-CEO Chris McCarthy said that the staff reductions would impact marketing, finance and other departments. The company also took a second-quarter impairment charge of $5.98 billion on its cable networks, yet another sign of weakness in the traditional TV industry.

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