The wave of layoffs continues in the U.S. job market. Following major big tech companies, media company Paramount Global and grocery delivery service Instacart have also joined the ranks of workforce restructuring.
According to CNN, Bob Bakish, CEO of Paramount Global, announced in an internal message to employees on the 13th (local time) that layoffs will be conducted globally. Although the exact scale was not disclosed, company sources confirmed that about 800 employees, approximately 3% of the total workforce, will be laid off.
This news came just days after the subsidiary CBS and streaming service Paramount+ broadcasted the U.S. professional football (NFL) Super Bowl, which recorded the highest-ever viewership and advertising revenue. The giant media company Paramount Global operates channels such as CBS, Paramount Pictures, Pluto TV, Paramount+, Nickelodeon, and Comedy Central. However, due to declining viewership in the cable TV market and sluggish streaming services, the company is accumulating losses. CEO Bakish said, "This (restructuring) will help us build momentum and implement our strategic vision over the next year."
On the same day, grocery delivery company Instacart also announced layoffs of about 250 employees, which accounts for approximately 7% of its total workforce. This move is interpreted as an effort to improve profitability in response to intensifying industry competition and rising grocery prices. Instacart CEO Fidji Simo stated in a letter to investors, "We will be able to reorganize the company and focus on the most promising initiatives." The company also confirmed that three executives, including the Chief Technology Officer (CTO) and Chief Operating Officer (COO), will resign for personal reasons.
Despite still strong employment indicators, layoffs and workforce reductions continue to be announced mainly among tech companies in the U.S. this year. Last week, DocuSign and Snap, the parent company of Snapchat, announced reductions of 6% and 10% of their workforce, respectively. Google, Amazon, Nike, Intel, and Citigroup are also representative companies that have disclosed workforce cuts. The Business Journal reported, "Despite strong employment indicators, the anxiety over layoffs continues."
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