Paramount Skydance is preparing to lay off about 1,000 employees this week as part of a sweeping cost-cutting initiative, according to people familiar with the matter. The newly merged company, which combines Skydance Media and Paramount Global, will begin the reductions on Wednesday, October 29, primarily affecting U.S.-based staff.
The layoffs represent the first major restructuring under the new leadership team led by Chairman and CEO David Ellison. Sources said additional rounds of job cuts are expected in the coming months, with the total number of layoffs projected to reach around 2,000 positions in the United States, along with further reductions overseas.
A spokesperson for Paramount Skydance declined to comment. The plans for this week’s layoffs were first reported by Bloomberg.
Cost Reductions Following $8 Billion Merger
Major layoffs had been anticipated before the merger between Skydance Media and Paramount Global was completed earlier this year. The companies had previously announced a goal of cutting up to $2 billion in expenses to streamline operations and improve profitability.
At a press conference on August 7 in New York following the $8 billion merger, Jeff Shell — former CEO of NBCUniversal and now President of Paramount Skydance — told reporters that layoffs and cost cuts would be implemented “as swiftly as possible” and disclosed in the company’s third-quarter 2025 earnings report, which will be released on November 10 after markets close.
Ellison’s Expansion Strategy
Ellison, the founder of Skydance Media and son of Oracle founder Larry Ellison, has laid out ambitious plans for the combined entertainment company. His long-term strategy includes pursuing a potential deal with Warner Bros. Discovery to create a larger competitor to Netflix, Apple, and Amazon, all of which have expanded their investments in original content.
However, Warner Bros. Discovery has so far rejected Ellison’s overtures, according to sources.
Since assuming control of Paramount, Ellison has made several bold investments. Paramount Skydance recently secured a seven-year, $7 billion exclusive deal for UFC broadcasting rights, expanding its live sports portfolio. The company also signed the Duffer Brothers, creators of Stranger Things, to a four-year exclusive partnership to develop films and television projects for its platforms.
Leadership Moves and Controversy
Some of Ellison’s recent decisions have generated internal debate. Paramount Skydance reportedly spent $150 million to acquire the right-leaning media outlet The Free Press, and Ellison appointed its founder, Bari Weiss, as editor-in-chief of CBS News despite her limited television experience.
Weiss’ appointment has sparked concern among staff and industry observers about the editorial direction of CBS News. In a recent comment, Weiss said, “You don’t compromise on what you do, and you do it until they tell you to leave.”
Industry Headwinds
Paramount Skydance’s layoffs come amid broader challenges across the media industry. Traditional television viewership continues to decline as consumers shift toward streaming services, while the theatrical film business has yet to fully recover from the disruptions caused by the COVID-19 pandemic.
Ellison has signaled that he intends to take an aggressive approach to reposition the company for long-term growth, but the immediate focus remains on reducing costs and integrating operations.
The upcoming cuts mark the first wave in what is expected to be a multi-phase restructuring effort aimed at stabilizing the merged company and making it more competitive in a rapidly changing entertainment landscape.
Source: AOL