Paramount Layoff: 110 Jobs Cut
Paramount layoffs will affect 110 employees. The Hollywood studio announced cuts in their finance, legal, marketing, human resources, and IT departments. The cuts are part of an effort to reduce costs.
The studio is located in Los Angeles, California. However, it is owned by Viacom Incorporated, of New York.
Chief Financial Officer Frederick Huntsberry announced the reduction of staff in a memo. Huntsberry expressed optimism about the future. However, he said the cuts are necessary to move forward:
“We are confident that these changes will allow us to manage our business with greater speed and flexibility and fully capitalize on opportunities in the global entertainment market.”
As reported by Variety, the layoffs were not a surprise. Viacom Chief Executive Officer Philipp Dauman recently discussed plans to reduce expenses.
Dauman outlined a plan to produce more “low risk” films. He said the studio will be keeping “a tight lid on expenses, including in programming.”
The CEO said the focus will be on films that promote consumer products and have high probability of profit. Dauman cited the Teenage Mutant Ninja Turtles to underline his point.
This is the second round of Paramount layoffs in two years. In 2011, the studio cut 120 jobs. The first round of cuts were attributed to a loss in DVD sales.
The 2011 cuts included a reorganization plan. The studio’s headquarters were moved from London to Los Angeles. The studio also consolidated their television and digital divisions.
Paramount Pictures was founded by Adolph Zukor in 1912. The studio is touted as “the longest operating and only major studio remaining in Hollywood.”
As reported by ParamountStudios.com, the studio began with motion pictures. They eventually moved on to include television and digital programming.
In 1927, the studio won the first Academy Award for Best Picture.
The Paramount layoffs will affect numerous employees. However, executives say the cuts are necessary to remain competitive.
[Image via Flickr]
