Paramount Global announced widespread layoffs on Tuesday, cutting an estimated 800 jobs or 3% of its global workforce, according to multiple reports. The cuts came suddenly but were not entirely unexpected, as the media giant continues to restructure its sprawling business amid shifting trends in the entertainment industry.

CEO Bob Bakish broke the news in a memo to staff, saying the company had made difficult decisions to strengthen itself for the future. Though he expressed confidence this was the right path, Bakish acknowledged the painful impact on departing employees he called “very valued colleagues.”

The reductions reportedly touch every corner of Paramount’s empire, including its flagship streaming service Paramount+, broadcast TV networks like CBS, cable channels like MTV and Comedy Central, Paramount Pictures film studio and more. International offices will see cuts too, Bakish indicated, done “over time” to comply with local laws.

The brunt of the cuts seems to hit Paramount+, the streaming home of Star Trek, South Park, Yellowstone and other shows. This surprised some analysts, as Paramount+ has been the company’s fastest-growing segment and a strategic priority.

But the move aligns with other tech and media giants downsizing bloated pandemic-era staffing, like recent layoffs at Amazon, Salesforce, CNN, Warner Bros. Discovery and more. Paramount is essentially tightening belts after heavily investing in streaming wars against Netflix, Disney+ and others.

The company has a fair reason for optimism despite the painful reorganization. Revenue and profits are up, thanks to hits like Top Gun: Maverick. Paramount’s broadcast of Super Bowl LVIII drew astronomical viewership, showcasing its reach. As Bakish touted in his memo, Paramount has “the right strategy.”

Still, the old-school TV side of Paramount’s business remains under pressure. Linear TV advertising revenue dropped 14% last quarter amid cord-cutting shifts. Talks to merge with Warner Bros. Discovery fizzled in December, squashing hopes to gain scale. Rivals like Disney are better positioned for the streaming era.

So Paramount is getting leaner to remain competitive. The shock of sudden job losses won’t ease the hardship on those affected and their families. But Bakish expressed commitment to treating the departed with the dignity and respect they deserve.

After weathering this storm, Paramount hopes smoother seas are ahead. But the turbulence facing traditional entertainment giants won’t disappear overnight. More difficult choices likely lie ahead.

This article was originally published on February 13, 2024, at 9:30 am ET.