Paramount to Slash 1,000 Jobs Amid Post-Merger Shakeup

Paramount Skydance is set to lay off around 1,000 employees this week, mostly in the U.S., Variety has confirmed. Sources say this is only the first round of cuts, with additional layoffs expected later.

Overall, the company plans to reduce about 2,000 U.S. jobs, with more reductions internationally. A spokesperson for Paramount Skydance declined to comment. Bloomberg first reported this week’s layoffs.

The job cuts follow the $8 billion merger between Skydance Media and Paramount Global. Even before the deal closed, executives had signaled that major cost reductions were coming as part of a plan to save up to $2 billion.

At a press event in New York on August 7, Jeff Shell, the former NBCUniversal CEO and now president of Paramount Skydance, told reporters that layoffs and cost cuts would happen quickly and be outlined in the company’s third-quarter 2025 earnings report. Paramount Skydance is set to release its Q3 results on November 10 after the market closes.

David Ellison, founder of Skydance Media and chairman and CEO of Paramount Skydance, has ambitious plans for the company. He has even explored a potential deal with Warner Bros. Discovery that would create a larger media company to better compete with streaming giants like Netflix, Apple, and Amazon. So far, Warner Bros. Discovery has declined the proposal.

Since taking over Paramount, Ellison has made several high-profile moves. The company paid $7 billion for exclusive UFC rights in a seven-year deal. Paramount also signed the Duffer Brothers, creators of Stranger Things, to a four-year deal for movies, shows, and streaming content. Some decisions have drawn controversy, including the $150 million purchase of the right-leaning outlet The Free Press and appointing its founder Bari Weiss as CBS News editor-in-chief despite her lack of TV experience.

Paramount faces challenges similar to other major media companies. Revenues are down as viewers move from cable and broadcast TV to streaming, and the theatrical film business is still recovering from the pandemic.

These layoffs highlight the pressure on Paramount Skydance to restructure and compete in a changing media landscape. Ellison’s aggressive spending and expansion plans may reshape the company, but they come amid significant cost-cutting and industry-wide challenges.

What do you think about Paramount Skydance’s layoffs and strategy? Do you see them as necessary for growth or a risky move? Share your thoughts in the comments.