Paramount (PARA) is reportedly cutting 25% of staff in its domestic cable networks and shuttering its long-standing MTV News division after 36 years on air.
Nine teams will be merged into one, according to Bloomberg, which first reported the news. Employees were notified of the cuts on Tuesday. The company did not respond to Yahoo Finance’s request for comment on the report.
The update comes after the media company cut its dividend and released disappointing quarterly earnings last week. Paramount previously unveiled a restructuring plan that combines Showtime with MTV Entertainment Studios. The company, which also announced it would merge its Paramount+ and Showtime streaming services into one product to take on larger competitors, is eyeing greater integration between its cable television and streaming offerings amid escalating cord-cutting trends.
Paramount shares dropped as much as 5.9% on Wednesday. Shares recovered slightly to close the day down more than 4%.
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This article was written by and originally published on finance.yahoo.com