The head of CBS’ entertainment division is stepping down at the end of the year as the parent company of America’s most-watched broadcast network looks to cut costs in a challenging advertising market.
Kelly Kahl, the entertainment manager behind shows like “The Equalizer,” “NCIS: Hawai’i,” and “Fire Country,” told employees of his departure in an internal email. Thom Sherman, a program manager at Paramount, which owns CBS, also said in a note to employees that he planned to step down from his position.
Mr. Kahl will be replaced by Amy Reisenbach, the executive vice president of ongoing programs at CBS. In that role, Ms. Reisenbach has overseen creative matters for scripted series that air on CBS and shows CBS Studios produced for other broadcast networks.
“Kelly has been a fierce advocate for the vitality of television broadcasting while serving as a stable and respected network leader through times both good and turbulent,” CBS CEO George Cheeks said in an email to employees Wednesday.
Across the media industry, businesses are gearing up for a rough patch as marketers try to cut their ad spend in a tough economic climate. David Zaslav, CEO of Warner Bros. Discovery, and Bob Chapek, Disney’s CEO, have both said they plan to cut jobs or put hiring on hold as the market recovers.
Naveen Chopra, the chief financial officer of Paramount, which owns CBS, predicted cost cutting at the company during the company’s third-quarter earnings earlier this month, saying there would be “meaningful and significant” cuts in the coming months.
On Wednesday, Paramount completed a reorganization of its advertising division that will result in the departure of fewer than 100 employees, a person familiar with the decision said. The company has more than 20,000 employees.
Paramount is racing to replace the money generated by its declining traditional TV business with revenue from its streaming business, which is still unprofitable but growing rapidly. This month, Paramount said its flagship streaming service, Paramount+, added about 4.6 million subscribers in the third quarter and saw revenue grow about 65 percent compared to the same period last year. The company now has nearly 67 million streaming subscribers.
