Paramount Global has announced that it’s closing the TV arm of Paramount Pictures as it implements another round of layoffs in an attempt to achieve US$500 million in cost savings.

Established in 2013, Paramount TV Studios has primarily focused on productions for adult audiences, but it was also behind two recent kids shows—The Spiderwick Chronicles, which hit The Roku Channel in April; and Time Bandits, which rolled out on Apple TV+ last month. Spiderwick set a new benchmark as Roku’s most-watched debut, with the company noting that “millions” tuned in for the book-based fantasy series.

News of the Paramount TV Studios closure came to light in two separate staff memos sent by the division’s president Nicole Clemens (who is departing) and Paramount Global co-CEO George Cheeks. Cheeks explained that Paramount TV Studios’ current series (which should include the two kids shows mentioned above) and other projects in development will move to CBS Studios.

“A short time ago, we informed the team at Paramount Television Studios that the studio will cease operations at the end of the week,” Cheeks stated in his memo, which was first published by THR. “To be clear, this is not a decision based on how [the unit] performed, [but a] result of significant changes in the TV and streaming marketplace and the need to streamline our company.”

Last week, Paramount Global announced plans to lay off 15% of its US workforce as it reported a second-quarter loss of US$5.3 billion. The job cuts—estimated to impact 2,000 people—officially started yesterday (August 13). And the plan is to complete 90% of them by September, and the rest by year’s end.

Paramount is gearing up for a proposed merger with Skydance Media that is inching close to the finish line. The company’s “go-shop” window—when it can evaluate alternate takeover bids and offers from other companies—will come to an end on August 21.