Paramount shutters site, lays off 25% of staff

MTV News is shutting down as a result of layoffs at Paramount.

The news division’s shuttering comes less than a week after Paramount Global’s first quarter earnings call, during which the company posted significant losses including an 11% drop in television advertisement revenue.

In a memo to employees provided to USA TODAY Tuesday, Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, praised the success of Paramount+ and Showtime shows like “Yellowstone” and “Yellowjackets” but said the company continues to “feel pressure from broader economic headwinds.”

“Our senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business,” he wrote. “We have made a very hard but necessary decision to reduce our domestic team by about 25%. This is a tough but important strategic alignment of our group. Through the elimination of some units and by streamlining others, we will be able to reduce costs and create a more effective approach to our business as we move forward.”

Paramount includes MTV, CBS, Showtime, Nickelodeon, BET, Comedy Central, Pluto TV and Paramount+ brands.

The announcement comes days after the MTV Movie & TV Awards opted for a pre-taped show after its host Drew Barrymore dropped out in solidarity with the Writers Guild of America strike.

more: MTV Movie & TV Awards opts for pre-taped show after host Drew Barrymore drops out

“We’re pivoting away from a live event that still enables us to produce a memorable night full of exclusive sneak peaks, irreverent categories our audience has come to expect, and countless moments that will both surprise and delight,” Bruce Gillmer, an MTV executive producer, in a statement at the time.

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Last month, BuzzFeed News, which won a Pulitzer Prize less than two years ago, announced it would be shutting down.

BuzzFeed chief executive Jonah Peretti announced the news in a memo to employees as the media company plans to cut 15% of its workforce.

more: BuzzFeed News is shutting down, the CEO says, as the company cuts 15% of workforce

Contributing: Jordan Mendoza, USA TODAY; Associated Press

This article originally appeared on USA TODAY: MTV News shuts down as Paramount lays off 25% of staff