There’s no business like show business – until you’re part of a mass layoff

Last week, Paramount finished implementing another round of major company-wide layoffs as part of a $500 million cost-savings plan, which includes an overall workforce reduction of 15% (~2,000 employees).

• Paramount’s cost-savings plan comes on the heels of a $5.3 billion operating loss in Q2 – largely due to a “goodwill impairment” charge for its cable networks – and a loss of $250 million in the same period a year ago.

Paramount isn’t alone on the struggle bus. The US film and TV industry has yet to fully bounce back following the pandemic and writer/actor strikes of 2023, with major players like Disney, Warner Bros. Discovery, and Pixar also enacting layoffs in recent months.

• Unemployment in the industry stood at 12.5% in August – roughly 3x the national average of 4.2% – with analysts saying the real number is likely much higher, since many film workers don’t file for unemployment between projects.
• Overall, the number of TV and film productions during Q2 was ~40% lower compared to the same period in 2022.

📝 Bottom line: This trend not only means fewer new movies and binge-worthy shows – it could also have a major impact on the US economy. In Los Angeles alone, the entertainment industry contributes $115+ billion annually to the local economy, with an employment base of 681,000+ people.