Studio chairman and CEO departs after 12 years on back of ill-fated 2016.
Grey leaves after an annus horribilis at the box office and is replaced temporarily by an executive committee of four senior players at Paramount while the search for his replacement goes on.
In a note sent to studio staffers on Wednesday Grey said:
“I am writing to let you know that I am leaving Paramount. I will hand over most of my duties effective today, but will remain engaged in the coming weeks to support a smooth transition.
“It has been my privilege to be a part of Paramount’s storied history, and I am grateful to Sumner Redstone for giving me this opportunity. I want to wish Shari [Redstone, Viacom vice-chairman], Bob [Bakish, Viacom CEO] and their entire team the best as they embark on Viacom’s next chapter.
“From the moment I came to Paramount in 2005, I saw myself as a steward of an iconic institution. I never could have dreamed that privilege would last more than 12 years.
“In that time, it has been my honor to work with a group of wildly talented storytellers. The core of our successes has always been their unique ability to entertain and inspire people around the world.
“Above all, I am indebted to all of you, the wonderful people here at Paramount. Your creativity, professionalism and integrity are second to none. I am grateful to everyone who helped me along the way and I look forward to new adventures.”