A former Paramount employee has filed a proposed class action lawsuit against the company over last month's layoffs, The Wrap reports. The lawsuit is filed under New York state's Worker Adjustment and Retraining Notification act (WARN), which requires businesses to issue a 90-day written notice when enacting mass layoffs. Paramount Global began enacting a $500 million cost-cutting plan in August. "Phase two" took place in September, with the plan ultimately resulting in a 15% staff reduction.
"On or about September 24, 2024, defendants Paramount Global ('Paramount') CBS Interactive Inc. terminated the employment of Julian Hagins more than 300 other employees who worked at and/or reported to their headquarters in close geographic proximity to headquarters. Defendants provided written notification of the termination, which was effective on or about Sept. 30, 2024," the suit reads (via The Wrap). "New York WARN states that if an employee provides any employee with less than 90 days advanced notification of a plant shutdown or mass layoff, the employer shall provide that employee with 60 calendar days of wages and benefits."
The lawsuit is pursuing "relief sought herein on behalf of himself and all others similarly situated" for all potential members of the class action. That includes "an amount equal to the sum of their underpaid wages, salary, commissions, bonuses, accrued holiday pay, accrued vacation pay, pension, 401(k) and healthcare contributions" as well as 60 days of coverage under their previous benefit plans.
Paramount three interim co-CEOs, George Cheeks, Brian Robbins, and Chris McCarthy, stated that their cost reduction plan was "90% complete" after the actions on September 24. However, the legendary Hollywood studio is set to merge with Skydance Media in 2025, and Skydance identified $2 million in cuts during its evaluation of the company. In other words, the internal turmoil is probably not over.
