In a significant shakeup within Paramount Global, Paramount Television Studios (PTVS) has announced that it will cease operations by the end of this week, affecting approximately 20-30 employees. This decision comes as part of a broader strategic plan implemented by co-CEOs Brian Robbins, George Cheeks, and Chris McCarthy to streamline the company's operations in response to changes in the TV and streaming marketplace.

As PTVS winds down its operations, all current series and development projects under its purview will transition to CBS Studios. This includes high-profile projects such as Prime Video's "Cross," Apple TV+'s "Before" and "Murderbot."

In an internal memo to staff, PTVS president Nicole Clemens expressed gratitude for her team's contributions and accomplishments over the years. She highlighted successful projects such as "13 Reasons Why," "The Offer," "Defending Jacob," "The Alienist," "The Haunting of Hill House," "Station Eleven," "Time Bandits," "Tom Clancy's Jack Ryan," "Reacher," and "The Spiderwick Chronicles."

Clemens acknowledged the challenging times faced by the industry and emphasized the resilience and determination of her team in navigating these obstacles. She expressed pride in their ability to collaborate with talented creatives to produce captivating stories that have entertained audiences worldwide.

Simultaneously, Paramount Global has announced that members from various CBS teams will also be departing the company as part of this restructuring process. Co-CEO George Cheeks expressed gratitude for their contributions, hard work, and dedication in building CBS's leadership position in the industry.

The layoffs are expected to affect approximately 15% of Paramount's total U.S. workforce, with 90% of the cuts anticipated to be completed by the end of September. These changes aim to eliminate redundant functions and streamline corporate teams, focusing on areas such as marketing and communications, finance, legal, technology, and other support functions.

These cuts are part of Paramount's broader cost-cutting measures, which include $500 million in previously announced reductions associated with Skydance Media's pending merger with Paramount Global. This merger is expected to close in the third quarter of 2025, subject to regulatory approval and other customary conditions. In connection with these cost-cutting measures, Paramount anticipates incurring a restructuring charge of $300-$400 million in the third quarter, with a cash impact that will occur over the next several quarters.

While these changes may be unsettling for Paramount's employees, Co-CEO George Cheeks expressed appreciation for their resilience and focus during this transitional period. In addition to these cost-cutting measures, Paramount has also hired bankers to explore potential asset sales and is actively engaged in discussions regarding strategic partnerships or joint ventures.

The ComicBook and PopCulture websites have already been sold to Nashville-based Savage Ventures for an undisclosed amount. Other potential assets that may be considered for sale include Pluto TV, BET, VH1, and the Paramount lot, which would be leased back for studio use.

These moves are part of Paramount's broader strategy to accelerate streaming profitability, with Paramount+ on track to reach domestic streaming profitability in 2025. Despite shedding 2.8 million subscribers in the second quarter, Paramount remains optimistic about returning to net subscriber growth in the second half of the year, driven by a consistent cadence of original content and normalized international subscribers following the strike's impact.

As Paramount navigates these changes, it remains committed to delivering captivating stories to audiences worldwide while streamlining its operations for future success in the evolving TV and streaming marketplace.