Paramount Skydance Corp. announced plans Monday to cut an additional 1,600 jobs as part of an aggressive cost-saving push aiming for at least $3 billion in annual efficiencies—$1 billion more than the company's previous $2 billion target following its merger with Skydance Media.
The layoffs, detailed in a shareholder letter and first post-merger earnings report, target a 15% overall workforce reduction and come on top of about 1,000 U.S.-based cuts last month and roughly 600 voluntary buyouts triggered by a new five-day-a-week return-to-office mandate starting in January. The moves are designed to streamline operations amid declining linear TV revenue and streaming competition, with one-time restructuring costs estimated at $800 million in 2026 and $400-500 million in 2027.
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| David Ellison |
Paramount also acquired Bari Weiss's Free Press for $150 million, installing her as CBS News editor in chief, and aims to nearly double its film slate while reorganizing into three units: Studios, DTC (direct-to-consumer), and TV Media.
The fresh cuts coincide with speculation about a potential $58 billion all-cash bid for Warner Bros. Discovery, backed by Ellison's father, Oracle co-founder Larry Ellison, though analysts question Paramount's firepower amid its $16.7 billion market cap versus Warner's $57 billion. Third-quarter revenue fell to $6.71 billion from $6.87 billion expected, but DTC profits hit $49 million, up from a $238 million loss a year ago.
Paramount's overhaul reflects broader Hollywood turmoil, with successive layoffs since 2024—including 800 in June and 2,000-3,000 targeted post-merger—driven by a $6 billion cable asset write-down and advertiser pullbacks. Employees in Los Angeles and New York, particularly at VP level and below, have faced repeated uncertainty, but Ellison framed the changes as "necessary steps" to drive free cash flow and streaming profitability.