Bakish said the entertainment industry has been confronted by numerous challenges, including a soft ad market, dual Hollywood strikes and a "volatile" macroeconomic environment, all while navigating the business' transition from traditional movies and TV to streaming.
Paramount will look to manage costs it seeks to drive earnings, as it adjusts to "current realities," he wrote in a memo to staff.
"As it has over the past few years, this does mean we will continue to reduce our workforce globally," Bakish wrote in the memo, which was seen by Reuters. The company did not disclose how many jobs it would cut.
Paramount will focus its resources on its "most powerful, resonant franchises, films and series," and produce fewer local, international originals, Bakish said. The studio is home to such film franchises as "Top Gun" and "Mission: Impossible," as well as the hit television show "Yellowstone."
Overall, more than 23,670 workers have been let go from 82 tech companies worldwide in January, according to tracking website Layoffs.fyi. Major media outlets, including the Los Angeles Times and Sports Illustrated, also have shed workers.
The tech sector cut 168,032 jobs in 2023 and accounted for the highest number of layoffs across industries, according to a report by Challenger, Gray and Christmas earlier this month. The media industry shed 21,417 jobs last year, up 467% from the 3,774 announced in the same period in 2022. It is the highest total for the sector since 2020, according to the outplacement firm.
"Like many media conglomerates, Paramount is burdened with debt and doesn't have a clear path to overcome the deterioration of its linear TV assets," said Ross Benes, senior analyst at Insider Intelligence. "Tough market conditions and the company's financial issues contribute to layoffs as the company refashions its mountain of entertainment into a hill."
Bakish acknowledged "speculation" about Paramount, but did not provide details about deal talks, saying the best course of action for the company is to "concentrate on what we can control - execution."
David Ellison has expressed interest in acquiring the Redstone family's holding company, National Amusements(NANLA.UL), as a way of gaining control of Paramount Global. He is exploring combining his film and television studio, Skydance Media, with Paramount. Neither Ellison nor National Amusements could be reached Thursday for comment.
"It's no surprise that Paramount remains a topic of speculation," Bakish wrote. "We're a storied public company in a closely followed industry."
Bakish wrote that Paramount will seek to wring the most profit out of these properties by distributing them across multiple platforms, including streaming, film, television and licensing, he said.
The company will continue to push toward profitability with its streaming business, and "lean even further" into large markets like the U.S., Canada, the U.K. and Australia, he wrote.
"In many ways, 2024 will be the next great step in our transformation," Bakish wrote.
