Paramount is laying off hundreds of employees

Paramount, the owner of TV networks such as Nickelodeon, MTV and Comedy Central, is laying off hundreds of employees, cutting costs as the company continues its painful transition away from traditional television.

About 3 percent of the company's roughly 24,500 employees will be affected by the layoffs, according to a person familiar with the cuts who spoke on condition of anonymity to discuss sensitive company information.

Bob Bakish, Paramount's CEO, said in a memo to employees that the cuts were part of an effort to “return the company to earnings growth.”

“While I recognize that these changes are in no way easy, as I said last month, I am confident that this is the right decision for our future,” Mr. Bakish wrote. “These adjustments will enable us to build on our momentum and execute on our strategic vision for the year ahead – and I am confident we have much to be excited about.”

Paramount is at a crossroads. The company's controlling shareholder, Shari Redstone, is considering selling her stake in the company, a deal that could end decades of family ownership. Skydance, the media company that helped produce Paramount franchises like “Top Gun” and “Mission Impossible,” has expressed interest, but no deal has been finalized yet.

Like all its peers in traditional media, Paramount has struggled to keep pace with Netflix as streaming services displace traditional TV and movies. The company's largest streaming service, Paramount+, has not yet become profitable, which is hurting the company's bottom line. Paramount's streaming division, which includes the ad-supported service Pluto TV, lost more than $1 billion last year.

Although viewership on Paramount's cable networks is declining, parts of its TV business remain resilient. Paramount's CBS network, which broadcast Sunday's Super Bowl, generated record ratings for the game, which saw the Kansas City Chief beat the San Francisco 49ers in overtime. According to Nielsen, approximately 123.4 million people watched the game, up from 115.1 million the year before.