Paramount investors cheered first streaming profit

Paramount Global (NYSE:PARA) stock was up 2%, at $10.42 on Friday, after the media conglomerate revealed upcoming changes that will see it axe 2,000 employees, which is around 15% of its staff.

The job cuts are expected in marketing, communications, finance, legal, technology, and other support functions.

It comes as Paramount, which is to merge with Skydance Media, seeks to cut costs by $500 million.

Paramount meanwhile wrote off a $5.98 billion impairment charge against cable networks, the latest signpost in the troubles and decline in the traditional TV market – echoing the week’s earlier $9.1 billion write-down over at Warner Bros Discovery.

In its streaming business, meanwhile, Paramount saw a profit of $26 million for the second quarter, its first profitable quarter for unit.

Group revenue was down 11% to $6.8 billion, short of Wall Street forecasts of $7.21 billion.

Earnings per share was reported at 54 cents which was much higher than analysts feared, with a consensus prediction of 12 cents.