TV giant Paramount (PARA) , which owns networks such as CBS, Nickelodeon, MTV, and Comedy Central, is suffering from a popular consumer trend.
The company revealed in its first-quarter earnings report for 2025 that its total company revenue decreased by 6% year-over-year. Specifically, it generated $4.5 billion in TV media revenue, which is 13% lower than what it earned during the same quarter last year.
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Paramount flagged that its TV media segment faced a decrease in advertising revenue and subscriber numbers.
Related: Spectrum struggles to reverse alarming customer behavior
Paramount’s struggles come as many consumers across the country have been ditching cable TV for streaming services in an effort to save money, a trend called cord-cutting.
Two of the largest cable TV providers in the U.S., Comcast and Spectrum, have lost about 608,000 TV customers during the first quarter of 2025, meaning they faced an average of 6,755 cancellations daily.
A recent survey from digital security firm All About Cookies even found that only 46% of Americans still use traditional cable or satellite TV services, and only 14% of cord-cutters regret cutting their cable. Also, 76% of Americans watch shows through paid streaming services, and younger people are less likely to watch cable TV.
Paramount is shifting its focus on streaming as it sees declines in its cable business.
Image source: TheStreet/Shutterstock/Paramount
Paramount makes a harsh move
Amid this drastic change in customer behavior, Paramount has decided to make a harsh change to its workforce.
In a memo sent to employees on June 10, Paramount executives revealed that the company will lay off 3.5% of its U.S. employees as it navigates “the continued industry-wide linear declines and dynamic macro-economic environment” and prioritizes its “growing streaming business.”
“We will be reducing our domestic workforce by 3.5%, with the majority of impacted staff being notified today,” said the executives in the memo. “This process may also result in some impacts to our workforce outside the U.S. over time. As always, any changes will be considered in accordance with local legal obligations. We recognize how difficult this is and are very thankful for everyone’s hard work and contributions. These changes are necessary to address the environment we are operating in and best position Paramount for success.”
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The move from Paramount comes after Paramount Media Networks CEO Chris McCarthy warned during an earnings call in August last year that the company planned to shrink its U.S. workforce by 15% after identifying $500 million in annual cost savings.
“We are primarily focused on two areas: first, redundant functions within marketing and communications; second, streamlining our corporate structure, reducing our headcount in finance, legal, technology, and other support functions,” said McCarthy during the call.
He said that the layoffs will mostly conclude by the end of 2025.
The stern warning followed Paramount’s decision to lay off 800 employees in February that year. The company also cut its headcount by 25%, affecting employees in its cable network division, in May 2023.
Paramount follows a startling workplace trend
Paramount’s competitors have also been making job cuts as customers ditch cable for streaming.
Earlier this month, Disney laid off hundreds of employees in its film and TV sectors and multiple corporate departments.
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Warner Bros., which owns cable networks such as Cartoon Network, Discovery, and HBO, later followed in Disney’s footsteps and laid off about 100 employees in its cable TV sector.
Many companies nationwide are trimming their workforce amid macroeconomic uncertainty and changes in customer behavior. So far this year, roughly 145,000 employees have lost their jobs, according to data from WarnTracker.com.
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