In a significant restructuring move, Paramount Skydance is set to implement extensive layoffs beginning the week of October 27. This decision comes under the new leadership of David Ellison and follows a merger that has raised the stakes for efficiency at the combined entity.
Details of the Layoffs
- Estimated job cuts: Around 2,000 positions in the U.S.
- Additional layoffs anticipated internationally.
- Layoffs are part of a strategy to cut $2 billion in costs.
The management’s restructuring plan has been anticipated since before the Skydance and Paramount Global deal was finalized. The efforts aim to enhance profitability amidst declining advertising and distribution revenue, especially as traditional pay-TV subscribers shift towards streaming services.
Company Context
As of December 31, 2024, Paramount reported approximately 18,600 employees spread across 32 countries, a decrease from 24,500 two years prior. Earlier in the year, the company laid off 3.5% of its domestic workforce, indicating a trend toward workforce reduction during challenging financial times.
Leadership and Strategy
The ex-CEO of NBCUniversal, Jeff Shell, now serves as president of Paramount Skydance. He has emphasized the necessity of swift cost reductions, which will be detailed in the firm’s Q3 earnings report scheduled for November 10.
Despite impending layoffs, the company is pursuing aggressive content investments. Recently, Paramount secured a $7.7 billion deal for exclusive rights to UFC, alongside a partnership with Activision for a “Call of Duty” movie and the acquisition of Bari Weiss’ The Free Press for $150 million.
Future Implications
Ellison, chairman and CEO of Paramount Skydance, is also eyeing a potential acquisition of Warner Bros. Discovery, which may significantly alter the landscape of media mergers and acquisitions. Reports suggest that WBD rejected a $20-per-share offer from Paramount as insufficient.
Leadership Changes
- Makan Delrahim – Chief Legal Officer
- Dane Glasgow – Chief Product Officer
- Jay Askinasi – Chief Revenue Officer
- Cindy Holland, Dana Goldberg, and Josh Greenstein – Key roles in streaming and film divisions
- George Cheeks – Chair of TV Media
The restructuring at Paramount Skydance marks a pivotal moment for the company. As they navigate these layoffs and investments, the leadership is focused on stabilizing the organization in a rapidly changing media environment.
