Paramount Global announced significant layoffs, affecting approximately 800 employees, just one day after celebrating record-breaking viewership for the Super Bowl, CEO Bob Bakish revealed in an internal memo on Tuesday.

The layoff, which represents about 3% of Paramount’s workforce, was confirmed by a source familiar with the matter. As of the end of 2022, Paramount Global employed around 24,500 full-time and part-time workers.

Employees affected by the decision were notified on Tuesday, according to Bakish’s memo, where he expressed confidence that these adjustments would support the company’s strategic objectives for the upcoming year.

Following the news, Paramount’s shares experienced a 4% decline in morning trading.

The anticipated job cuts were first reported by Deadline in January, as Paramount Global navigates potential merger and acquisition opportunities. Recent discussions have involved Skydance Media and Warner Bros. Discovery, according to CNBC reports.

Paramount Global, which boasts assets like CBS, Paramount Pictures, Pluto TV, and Paramount+, had previously signaled the need for streamlining operations in an internal memo dated January 25. Bakish emphasized the necessity of operating more efficiently and reducing expenditures.

Despite the success of Super Bowl 58, which garnered an estimated record-breaking 123.4 million viewers across all platforms, Paramount+ continues to incur losses each quarter, reporting a $238 million loss in the third quarter. The company’s fourth-quarter earnings are scheduled for release on February 28.

The Super Bowl, aired on CBS, commanded a historic average of $6.5 million for a 30-second advertisement, as reported by Guideline, contributing to CBS’s substantial additional revenue, particularly due to the game’s overtime between the Kansas City Chiefs and the San Francisco 49ers.