Viacom's Paramount Pictures Cuts 53 Jobs as Consumers Reduce DVD Purchases
Viacom Inc.’s Paramount Pictures plans to eliminate 53 jobs in areas including home entertainment and digital production as consumers reduce spending on DVDs.
The job cuts represent about 2 percent of the Los Angeles- based studio’s 2,600 employees. Paramount notified employees of the cuts today in a memo confirmed by outside spokesman Steven Rubenstein. They were previously reported by TheWrap.com.
Paramount is restructuring four units and eliminating overlapping roles as consumers shift from buying DVDs to viewing videos online and on mobile devices. The studio posted a $69 million profit in the June-ended quarter, after an $8 million loss a year ago, because of lower costs from fewer new releases.
“The restructuring we are announcing today consolidates our operations in a way that is consistent with how more of our customers are exploring multiple facets of the film experience,” Paramount Chief Operating Officer Frederick Huntsberry and Vice Chairman Rob Moore said in the memo.
Licensing and consumer products will merge into the Motion Picture Promotions unit, the studio said. The production and development of home entertainment and digital formats will combine under Paramount Digital Entertainment. The distribution of movies on digital platforms will be handled by Paramount Pictures Worldwide Television Distribution.
Viacom, based in New York, fell 9 cents to $36.19 at 4:01 p.m. in New York Stock Exchange composite trading. The Class B shares have gained 22 percent this year.
To contact the reporter on this story: Sarah Rabil in New York at srabil@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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