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Paramount Eyeing $1 Billion Restructuring Charge in Current Fiscal Quarter, Ending March 31 Media Play News

February 28, 2024

Paramount Global Feb. 28 said it expects to report a $1 billion restructuring charge in the current fiscal quarter, ending March 31. Speaking on the fiscal call, CFO Naveen Chopra said the charges are the result of previously-announced 800 layoffs companywide, in addition to $200 million in content write-downs across international operations.

Paramount CFO Naveen Chopra

The media company, like much of Hollywood, is looking to reduce operating costs as it drives to achieve profitability at its direct-to-consumer business, which includes Paramount+. Among the downsizing, was the shutdown of the Noggin streaming service targeting preschoolers.

Chopra added that he expects to find continued opportunities to find fiscal efficiencies in the business on the traditional linear and on the direct-to-consumer side.

“On the streaming side, it’s more about how we grow even more efficiently, and on the linear side it’s really about the margins in that business,” he said on the fiscal call.

The CFO said he expects Paramount+ sub growth in 2024 to be lower than 2023 when the platform added about 10 million paid members. Chopra said the number of Paramount+ sub additions during Super Bowl LVIII could not be easily replicated during the year, which includes heightened churn levels typical among new subscribers acquired during a special event.

“We’re encouraged by what we’ve seen thus far,” Chopra said.

Erik Gruenwedel

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