Paramount Global (NASDAQ:PARA) shares are trading relatively flat on Tuesday.

The Hollywood Reporter reported that the company is executing another significant round of layoffs on Tuesday.

In a memo to employees on Tuesday morning, the co-CEOs indicated that the company would begin the second phase of workforce reductions that day, expecting to complete 90% of the cuts by day’s end.

The report noted that CBS News is among the affected divisions, with the IBEW union stating that its members have been involved in producing CBS broadcasts since before television existed, making the layoffs particularly difficult to accept.

Also Read: Paramount To Cut 2,000 Jobs In Major Restructuring Move: Report

The initiative is part of a broader effort by the owner of CBS, Comedy Central, and MTV to cut expenses during a challenging time for traditional media firms, Variety reported.

As a result of the layoffs, the company anticipates a restructuring charge of $300 million to $400 million in the third quarter, per the report.

According to the memo, Paramount is working to accelerate streaming profitability while adjusting to the evolving landscape in its traditional businesses.

In its recently reported second-quarter results, the company’s co-CEOs said, “we will continue to aggressively execute on our Strategic Plan which focuses on transforming streaming to accelerate profitability, streamlining our organization — including at least $500 million in annualized cost savings — and improving the balance sheet by growing free cash flow.”

According to Benzinga Pro, PARA stock has lost over 17% in the past year. Investors can gain exposure to the stock via Invesco S&P 500 Equal Weight Communication Services ETF (NYSE:RSPC) and Invesco S&P 500 Pure Value ETF (NYSE:RPV).

Price Action: PARA shares are trading higher by 0.58% to $10.44 at last check Tuesday.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.