Paramount Global, looking to reduce costs as it copes with a loss of traditional TV viewers, is letting go about 25% of the staff in its domestic cable networks and shutting down MTV News after four decades on the air.
(Bloomberg) — Paramount Global, looking to reduce costs as it copes with a loss of traditional TV viewers, is letting go about 25% of the staff in its domestic cable networks and shutting down MTV News after four decades on the air.
Employees are being notified Tuesday, the company said in a statement.
Paramount is combining nine separate teams into one. It had already announced plans to merge its Showtime and MTV studios.
Despite subscriber growth and new hit shows, “We continue to feel pressure from broader economic headwinds like many of our peers,” said Chris McCarthy, head of the company’s media networks.
Paramount shares collapsed last week after the company reported an 11% decline in ad sales at its traditional TV networks and a $511 million loss in streaming.
The results underscore the challenges big media companies face in making the transition to online viewing.
The closing of MTV News will likely hit a note of nostalgia for older viewers who remember the organization that featured former Rolling Stone writer Kurt Loder delivering the latest music news and played a significant role in President Bill Clinton’s efforts to reach younger voters.
Its demise fits into a trend of media companies shutting down or significantly reducing their news operations, including BuzzFeed Inc.
and Vice Media.
(Updates with company financials in fourth paragraph.)
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