Paramount Global PARA shares are trading slightly lower on Tuesday.

The company reportedly started slashing its employee base today after it said last week that it intended to cut 15% of its U.S.-based workers, amounting to roughly 2,000 jobs, reported Bloomberg.

In an internal memo viewed by Bloomberg, the company’s three co-chief executive officers told staff that Paramount would conduct the layoffs in three steps.

Bloomberg added, citing an internal company memo, that 90% of the layoffs are projected to be completed by the end of September.

Read Also: Paramount Analyst On Risk-Reward After Skydance Merger: ‘We Think Shares Are Worth A Shot At The Current Price'

“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business,” the co-CEOs said in the memo.

In its recently reported second quarter results, the company’s co-CEOs said, “Looking ahead, we will continue to aggressively execute on our Strategic Plan which focuses on transforming streaming to accelerate profitability, streamlining our organization — including at least $500 million in annualized cost savings — and improving the balance sheet by growing free cash flow,”

Paramount’s Global Stock Prediction for 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Paramount Global’s revenue has grown at an average rate of 11.2% annually over the past five years. The average one-year price target from analysts is $13.29, representing an expected 29.28% upside in 2025.

While past performance does not guarantee future results, investors should also look at a stock's historical performance when compared to a benchmark index and the company's peers.

Shares of Paramount Global have seen an annualized return of -34.05%, underperforming the S&P500 index by 40.2%. This compares to -3.06% growth in the overall Communication Services sector. Paramount Global has a beta of 1.17.

Price Action: PARA shares are trading lower by 0.58% to $10.26 at last check Tuesday.

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