The Film division of TV network giant
) - Paramount Pictures - has decided to trim 110 employees or 5%
of its staff strength in order to economize and remain
Presently, Paramount has 2,200 employees and plans to slash its
workforce across most of its divisions which include finance,
human resources, information technology, international home-media
distribution, legal and marketing.
Paramount Pictures holds the sixth position in the market with
$718 million revenues or 8.9% market share while
Time Warner Inc.
) Warner Bros. and
) Universal studio are leading with 16.6% and 15.8% market share,
In 2011, Paramount had topped the box office with $1.86 billion
revenues or 18.86% market share. This was mainly attributable to
the success of the movie franchise "Transformers: Dark of the
Moon" that earned a whopping $ 1.1 billion worldwide.
In the third quarter of 2013, Global Theatrical revenues jumped
64% year over year, on top grossers like "Star Trek Into
Darkness" and "World War Z." Apart from the third quarter,
Paramount performed poorly during the last two quarters and l is
also expected to face stiff competition from "The Hobbit" and
Lions Gate Entertainment Corp.
) "The Hunger Games."
However, we believe that the fourth movie of the Transformer
series, to be released next year, will counter the current lull
in its movie business and help the company to regain its market
Currently, Viacom has a Zacks Rank #3 (Hold).
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