Paramount Television Studios Closes After 11 Years
Paramount Television Studios (PTVS) has shut down after 11 years in operation as a cost-cutting measure by Paramount Global in anticipation of its merger with Skydance Media. The closure, announced alongside layoffs impacting 15% of its US workforce (around 2,000 positions), reflects the challenges facing linear television and the broader industry transition.
The decision follows earlier cost-cutting initiatives this year, with Paramount Global aiming to reduce expenses by $500 million. The move is likely influenced by expected synergies with Skydance Media, which has its own television division and partnered with PTVS on successful shows like Reacher and Tom Clancy’s Jack Ryan.
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PTVS President Nicole Clemens, along with an estimated 20 to 30 staff members, will be leaving the company. This consolidation was somewhat expected following the integration of PTVS with CBS Studios under George Cheeks. All current series and projects in development will move to CBS Studios.
In addition to the aforementioned hits, PTVS produced notable shows including 13 Reasons Why, The Alienist, and Time Bandits. Upcoming series like Cross, Before, and Murderbot will now continue under the CBS Studios umbrella. In a staff memo, Clemens acknowledged the challenging industry landscape and highlighted her experience leading the studio.
The broader layoffs at Paramount Global will occur in three phases, finishing by year’s end, with 90% anticipated by September. These cuts will affect various departments, including marketing and communications, finance, legal, technology, and other support functions. This restructuring underscores Paramount’s efforts to adapt to evolving industry dynamics and position itself for future growth. A memo from the co-CEOs emphasized the necessity of these changes to navigate the industry’s ongoing transformation.
The $500 million in cost savings contributes to the larger $2 billion target identified by Skydance Media, positioning the company for a potential acquisition of Paramount Global. The deal is expected to close in the first half of 2025, pending customary closing conditions and regulatory approvals. A “go-shop” period, allowing for consideration of alternative bids, ends on August 21st. While Sony Pictures and Apollo had initially expressed interest, Sony Group has since withdrawn from pursuing a bid.
