Paramount is preparing to implement significant layoffs that could affect thousands of employees. The anticipated cuts are expected to occur before the upcoming earnings call on November 10, where David Ellison, the new CEO, will outline the financial strategy for the company.
Details on Upcoming Layoffs at Paramount
Sources indicate that layoffs could begin as early as the week of October 27. Although exact numbers remain unclear, reports suggest around 2,000 positions may be eliminated. This follows a period where Paramount employed over 18,600 people at the end of 2024.
Context of Layoffs
This decision comes after a series of earlier layoffs earlier this year, coinciding with the closure of the Skydance deal. At a press conference on August 7, Jeff Shell, president of Paramount, emphasized the need for swift action to implement these cuts. He remarked, “You can’t cut your way to growth in this business. You have to invest.”
Shel’s statement reflects the company’s willingness to balance cost-cutting measures with investments in future growth. His comments indicate the expectation of using these efficiencies to fund future investments.
Future Investments Under New Leadership
David Ellison, who took over as CEO in August, has reiterated plans to invest heavily in Paramount’s growth areas. His strategy was further underlined by a massive $7.7 billion deal to acquire UFC rights and several notable projects, including deals for Bari Weiss’ The Free Press and film rights for the Call of Duty franchise.
Ellison expressed confidence in expanding the company’s plans beyond the anticipated $2 billion in run-rate synergies, emphasizing a strong commitment to long-term value and growth.
Impact on Departments
The layoffs are expected to have widespread effects across multiple divisions at Paramount, including:
- CBS News
- The film studio
- Streaming services
- Television networks
As the company navigates these challenges, industry observers will be closely watching how the upcoming earnings call unfolds and what implications these layoffs might have for Paramount’s strategic direction.
