Paramount Will Close MTV News and Lay Off 25 Percent Of Employees

Jakarta, Armfalcon.com —

Paramount Media Networks will close MTV News compiled the layoffs (layoffs) to 25 percent of employees in the United States (US).

Chris McCarthy, chairman of Paramount Media Networks, MTV and Showtime, said the company continues to feel the pressure from economic downturns despite the success of streaming services. This was conveyed through a memo to staff on Tuesday (10/5).

“By eliminating some units and streamlining others, we will be able to reduce costs and create a more effective approach to our business as we move forward,” said Chris. CNN Business.

The decision to shut down MTV News, which has scaled back significantly in recent years, comes less than a month after BuzzFeed announced it would be eliminating its news division and Vice Media was canceling “Vice News Tonight” as part of a restructuring.

In addition to MTV News, a spokesperson for Paramount said several units at the company were being eliminated completely, most of which were related to operations.

In recent months, nearly every major news, entertainment and technology company has been forced to cut its workforce in the face of a slumping advertising market and other industry challenges.

Previously, Vice Media Group was threatened with bankruptcy amid the weakening advertising market and economic turmoil.

Reported Reuters citing a New York Times report on Monday (2/5), the company behind popular media sites such as Vice and Motherboard is reportedly preparing to file for bankruptcy.

Based on information from parties who know about this, the company received interest from five companies to buy its shares. In order to avoid bankruptcy, which may occur in the next few weeks, the company is considering selling its ownership.

In the event of bankruptcy, Fortress Investment Group as Vice’s creditor can control the company’s shares.

“Vice Media Group is engaged in a thorough evaluation of alternatives and strategic planning. The company, board of directors and stakeholders continue to focus on finding the best path for the company,” a company spokesperson told Reuters in an e-mail statement.

[Gambas:Video CNN]

(fby/sfr)