Paramount Pictures, Viacom’s movie studio, is starting to lay off 110 employees all over the world in a realignment that the company claims will help it adapt to increasing competition.
Job cuts: Part of reorganization
Frederick Huntsberry, Paramount Chief Operating Officer, announced the company’s decision in a memo to staff.
The job cuts amount to around 5% of Paramount’s workforce of 2,200. The departments that will be most affected by these cuts will be primarily in the international home media distribution, finance, human resources, legal and marketing.
According to an internal memo, the film studio is adapting to “an increasingly competitive environment.”
Staffers will be let go both on the lot and overseas.
Hardly any major successes
“Paramount is a subsidiary of Viacom and has long been very conscious of its bottom line. The dismissals come a month before Viacom’s quarterly earnings,”the COO continued to explain. “Paramount has been one of the least active distributors in Hollywood in recent years.”
Paramount is having a bounce back year after having hardly any major successes last year. It has not released a film this year since Brad Pitt’s “World War Z,” which was launched in June 2012.
The layoffs comes not a major surprise as recent statements by Philipp Dauman, chief executive of Viavom, stressed the need to keep expenses lower.