Paramount Skydance starts job cuts after merger, with more reductions ahead

Paramount Skydance begins first major layoffs since merger

Paramount Skydance is set to begin a major round of layoffs this week, cutting approximately 1,000 jobs across the US on Wednesday, October 29, according to multiple reports confirmed by Variety.

The move comes just months after Skydance Media completed its $8 billion merger with Paramount Global, forming a new entity under chairman and CEO David Ellison.

The cuts mark the first major wave in what sources describe as a larger restructuring effort expected to impact about 2,000 positions in total, with additional international layoffs anticipated later.

A company spokesperson declined to comment, but Bloomberg first reported the upcoming job reductions.

At a press conference on August 7 following the merger’s close, Jeff Shell, former NBCUniversal CEO and now president of Paramount Skydance, told reporters that cost-cutting measures would be implemented “as swiftly as possible.” He added that updates would be disclosed by the company’s third-quarter earnings report on November 10.

The layoffs are part of Paramount Skydance’s plan to reduce up to $2 billion in annual costs, as the entertainment giant faces mounting industry challenges.

Traditional television revenue continues to decline amid the shift to streaming, while theatrical revenues remain sluggish following the COVID-19 pandemic.

Despite the cuts, Ellison has been making bold investments aimed at revitalizing the company’s creative portfolio. Paramount recently spent $7 billion on a seven-year exclusive deal for UFC broadcasting rights and struck a four-year exclusive partnership with Stranger Things creators the Duffer Brothers, bringing them over from Netflix to produce new films and series.

However, some of Ellison’s decisions have sparked controversy. The media mogul reportedly purchased The Free Press, a right-leaning outlet founded by journalist Bari Weiss, for around $150 million, and subsequently appointed Weiss as editor-in-chief of CBS News, a move that raised eyebrows given her limited television background.

Ellison, the son of Oracle founder Larry Ellison, has also shown interest in expanding further. Industry insiders say he has approached Warner Bros. Discovery about a potential merger, though the studio has so far rejected his proposals.

As Paramount Skydance prepares for its Q3 earnings release next month, the company’s leadership faces the difficult balance of cutting costs while proving Ellison’s vision for a modern entertainment powerhouse can take hold in a rapidly evolving media landscape.