As a seasoned gamer who has survived numerous boss battles and level-ups in my career, I can’t help but feel a sense of deja vu when I hear about yet another corporate downsizing. It seems like every time I level up, the game throws a new ‘boss’ at me – this time it’s Paramount Global.
Paramount Global is facing a new lawsuit over the latest round of major companywide layoffs.
A class action lawsuit, submitted in a federal court in New York on Thursday, asserts that the company neglected to provide adequate advance notice to over 300 employees about their terminations, contrary to the state’s Worker Adjustment and Retraining Notification Act. This law mandates at least 90 days warning before a large-scale layoff occurs.
On September 24th, Paramount moved forward with “phase two” of its cost-cutting measures as part of a broader strategy to save $500 million by reducing its workforce by 15%. In a memo, co-CEOs George Cheeks, Brian Robbins, and Chris McCarthy explained that, similar to the entire media industry, they are striving to boost streaming profitability while adapting to changes in both traditional and emerging business sectors. They added that approximately 90% of the planned layoffs have already been carried out.
Last month saw the initial wave of job reductions. This affected not only the closure of Paramount Television Studios but also the exit of several prominent executives from their positions.
Last Thursday, a legal action was initiated for Julian Hagins, claiming that approximately 295 employees from the New York head office and at least 50 employees from nearby work sites were let go, effective as of September 30th.
According to the lawsuit, the employees are claiming they should have received their wages, salaries, commissions, bonuses, accumulated vacation pay, and benefits over a 60-day period, which they would have received had Paramount followed the law during that time frame.
According to federal law, businesses employing over 100 individuals must provide advance warning before a mass layoff affecting 500 or more people. However, some states impose tighter rules for employers. For instance, in California, companies with 75 or more staff members are obligated to give notice if 50 or more workers are let go within a month’s time. In New York, employers must issue a warning if the layoff impacts one-third of their workforce or at least 250 employees at a single location.
Violating the law can result in having to pay not only a fine, but also reimbursement for any lost wages and benefits, as well as a civil penalty.
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2024-10-03 21:54