Paramount is eliminating 110 positions in six departments - finance, human resources, IT, legal, marketing and international home media distribution. The layoff will affect about 5 percent of the company's 2,200 employees.
According to The Hollywood Reporter a memo was sent to all employees Tuesday morning by Chief Operating Officer Fredrick Huntsberry who said the layoff was necessary "to manage our business with greater speed and flexibility and fully capitalize on opportunities in the global entertainment market,"
"As our industry continues to adapt to an increasingly competitive environment, we are always ensuring that Paramount is conducting its business as efficiently and productively as possible," the memo said. "As such we are making important and necessary changes in how we operate across several business functions."
There is no word if more layoffs will happen but the studio has seen struggling with numbers at the Box Office in the last year. Paramount recently gained some steam at the Box Office with hit movies like "World War Z" starring Brad Pitt, "Star Trek Into Darkness" and G.I. Joe: Retaliation."
The Zombie-apocalypse movie was the highest earner with $539 million worldwide followed by "Star Trek" which earned $467 million and "G.I. Joe" which brought in $372 million.
Other movies like "Pain and Gain" and "Hansel and Gretel: Witches Hunters" were not as successful, THR reports.
The studio had a similar layoff in December 2008 when they decided to layoff about 100 employees in all divisions and most recently in October 2011, when the company cut 120 jobs.
"Change is always difficult and we never take these steps lightly," the memo said. "We know you all join us in wishing our departing colleagues well."
Paramount is currently getting ready to release several movies including "Nebraska," "Labor Day," "Anchorman: The Legend Continues" and "The Wolf of Wall Street."
