Why is there Showtime layoffs? Showtime is an American premium television network controlled by Paramount Media Networks. It is the flagship product of Showtime Networks, a subsidiary of Paramount Media Networks.
Due to pressure from more considerable headwinds, Paramount Media Networks is firing 25% of its personnel. It is also closing MTV News. Founded in the 1980s, MTV’s news branch will now be shut down, according to a company memo. In the US, layoffs will affect 25% of the workforce at Showtime, MTV Entertainment Studios, and Paramount Media Networks.
President of Paramount Media Networks, Chris McCarthy, issued a memo to staff members in May 2023. He claimed senior management and HR had worked over the previous few months to identify the best organizational structure for their company’s present and future needs. Due to consolidation, network group employees will see the majority of layoffs. Let us know more about the layoffs in detail in this article.
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Overview of the company
Showtime Networks Inc. (SNI) owns and runs the premium service Showtime. It is a fully owned subsidiary of Paramount Pictures. It offers acclaimed original shows, thought-provoking documentaries, blockbuster movies, comedy, music specials, and intense sports. Showtime runs eight 24-hour linear multiplex channels from its headquarters in Paramount Plaza. It is in the Broadway section of New York City.
Showtime is accessible as a standalone streaming service on all popular streaming platforms. This includes Showtime.com, cable, DBS, telcos, and online video streaming services. Also, SNI runs the on-demand variations of all three brands in addition to the premium services: The Movie Channel and FLIX. Through Showtime PPV, SNI promotes and distributes sporting and entertainment events. They offer pay-per-view viewing for subscribers.
The Showtime direct-to-consumer service will be integrated with the Paramount+ streaming service’s premium tier. This is according to plans released by Paramount on January 30, 2023. The combined service will replace a streaming bundle with the same name that debuted in mid-2022. It will be known as Paramount+ with Showtime. On June 27, 2023, the merger took place. By the end of 2023, the standalone Showtime and cable-specific Showtime Anytime apps will be discontinued.
Showtime has laid off around 120 employees
In January, Paramount announced a complete integration of Showtime into Paramount+ across streaming and conventional platforms. The new network will be known as “Paramount+ with Showtime” in the US. Through the merger, Showtime and MTV Entertainment
Studios are integrated, and a network division is formed. It consists of a portfolio group made up of nine different teams.
Parent firm Paramount Global had approximately 24,500 employees as of the end of 2022. Also, it had previously warned of layoffs. After announcing the transaction earlier this year, about 10% of Showtime’s employees were laid off.
A spokesperson for Showtime stated that on February 13, 2023, about 120 employees were let go. It was done as part of a streaming-focused restructure. The layoff also saw the exit of several top executives as the team of the premium TV channel combined into MTV Entertainment Studios.
More information was kept private detailing which Showtime divisions were affected. At that time, a source familiar with the issue suggested that the workforce reductions might account for almost 25% of Showtime.
Gary Levine and Jana Winograde, co-presidents of Showtime, will leave their positions amid ongoing changes at the pay TV network. It is as per what was previously reported on February 13, 2023. Levine will take on an advisory role, while Winograde will altogether leave Paramount Global.
President and CEO of Showtime and Paramount Media Networks, Chris McCarthy, disclosed the move and the new management team in a memo to staff. This news follows the announcement on January 30 that Showtime’s linear and streaming platforms would be integrated into Paramount+. It will be rebranded as “Paramount+ With Showtime,” as mentioned earlier.
McCarthy revealed the strategy in a memo to staff, noting that the following executives would be leaving:
- Vinnie Malhotra, SVP of Docs, Unscripted, and Sports Programming
- Michael Crotty, CFO and COO of Paramount Global Premium Group
- Rob Rosenberg, creative director, global brand and originals at Paramount International
- Kent Sevener, EVP of content acquisition at Showtime
These were all besides the already-announced Winograd.
“With this fresh structure, we will farewell several colleagues and friends. They have been essential in making Showtime what it is today. These include those from the executive team: Michael Crotty, Vinnie Malhotra, Rob Rosenberg, Kent Sevener, and Jana Winograde.”
McCarthy wrote in his note, recognizing the layoffs. But he did not go into further detail beyond executive positions. “Please join me in expressing gratitude for their priceless contributions and best wishes for their future aspirations,” he added.
Paramount lays off 25% of TV networks’ staff
On May 9, 2023, Paramount fired 25% of the employees working on its domestic TV networks as it completed the merger of Paramount+ and Showtime.
In a statement to staff members, Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, stated as follows:
“Leaders had worked “to identify the most effective organization for our business’s current and future needs.”
“As a result, we have decided to cut our domestic staff by about 25%. It is a tough but crucial decision. We will be able to save on expenses. We also develop an improved strategy for our business in the future through the closure of some units and the simplification of others,” McCarthy wrote in the memo.
On the same day, Paramount revealed that it would shut down MTV News, which debuted in the late 1980s, after years of downsizing.
Due to increasing streaming investments and an 11% decline in TV ad income, Paramount Global reported first-quarter earnings in the first week of May that were lower than projected. The fourth quarter of 2022 had a 7% decline before the current 11% decline. To save funds, the business also disclosed a dividend reduction.
Paramount+ attributed a rise in new subscriber growth to its successes. This includes “Yellowstone,” “1883,” “Tulsa King,” “George & Tammy,” and “Yellowjackets.” McCarthy attributed the layoffs to “the stress from broader economic challenges, like many of our competitors.”
In comparison, Warner Bros. Discovery finished a round of layoffs, while Disney is currently reducing 7,000 employees. The memo from Paramount stated that those whose positions had been eliminated would be notified immediately.
“We will inform affected employees of their status today, with leaders immediately informing the teams or people affected. Individual 1:1 sessions with our HR partners will follow those discussions,” according to McCarthy.
“I am aware that everyone will find these choices difficult, especially those leaving. We don’t take it lightly,” McCarthy continued.
Conclusion
The media and entertainment division will now be divided into “two functions.” They are Studios, which include Showtime and MTV Entertainment Studios; Networks, which “combines nine separate teams into one portfolio group.”
Nick, MTV, Comedy Central, Paramount Network, CMT, Smithsonian, TV Land, Logo, and Pop TV are among the Paramount-owned networks that are affected. Because of the consolidation, network groups will experience most of the layoffs.
