Paramount Global has announced that it will close its TV production division, Paramount Television Studios, at the end of the week. The decision is part of an extensive company restructuring, which also includes cutting about 15% of the US workforce, or around 2,000 jobs. At the same time, the production of previous Paramount content will be taken over by CBS Studios, which will henceforth be responsible not only for the CBS network but also for platforms like Paramount+.

The closure of Paramount Television Studios marks the end of an era in which the studio was responsible for numerous successful streaming hits such as "13 Reasons Why" (Netflix), "Reacher" (Amazon Prime Video), and "Defending Jacob" (Apple TV+). In recent years, however, the studio has lost significance due to industry consolidations and the challenges faced by its parent company.

The restructuring is happening at a time when the TV and streaming markets are undergoing fundamental changes. George Cheeks, Co-CEO of Paramount Global, explained in a message to employees that the decision was not based on the performance of the studio, but on the necessity to adapt the company to the new market conditions.

Paramount Global also wrote down the value of its cable TV networks by almost $6 billion last week, just a day after Warner Bros. Discovery reduced the value of its own cable business by $9.1 billion. These write-downs reflect the challenges faced by traditional media companies as consumer habits increasingly shift towards streaming.

Nicole Clemens, who led Paramount Television Studios for the past six years and previously held leadership positions at FX and Anonymous Content, is leaving the company following its closure. Clemens emphasized in a message to employees that the studio has taken a leading role in the streaming era.

The history of Paramount Television Studios goes back almost 60 years, when the company was founded after the merger with Desilu Productions. With iconic series like "Star Trek," "The Brady Bunch," "Happy Days," and "Cheers," the studio shaped the TV landscape for decades.