Paramount has restructured its Licensing and Consumer Products division. They’ve laid off 53 people worldwide and will save $10 million annually. Here is the memo just issued:

To: Paramount Employees
From: Frederick Huntsberry and Rob Moore
Date: Sept. 30, 2010

We wanted to inform you of a number of changes we are making to better manage our overall business, as well as make our reporting structure more rational and efficient. Effective today, we are restructuring four of our divisions and realigning the responsibilities of several senior executives. The key changes are as follows:

· Licensing and Consumer Products will now be merged into Motion Picture Promotions and overseen by LeeAnne Stables, Executive Vice President of Worldwide Marketing Partnerships.

· The development and production of feature films made for home entertainment and digital platforms are being consolidated under Tom Lesinski in his role as President of Paramount Digital Entertainment.

· The distribution of motion pictures on digital platforms will now be handled by Hal Richardson, President of Paramount Pictures Worldwide Television Distribution.

This realignment will result in a staff reduction of 53 positions worldwide. The new structure outlined above will advance our ongoing goal of eliminating redundancy, rationalizing similar business lines, and optimizing our work force and cost structure.

The hard work and talent of the employees whose positions are affected by this change have greatly enhanced our company, and we sincerely thank them for their efforts.

In today’s environment, companies must make smart choices about how resources are deployed. The restructuring we are announcing today consolidates our operations in a way that is consistent with how more of our customers are exploring multiple facets of the film experience. Paramount as a company simply must keep evolving and refining its operations.

We salute your efforts in making 2010 a great year thus far, and we have no doubt that it is now even better positioned to continue on that successful path.

– Frederick and Rob