Paramount Skydance to Lay Off About 1,000 Employees This Week, With Additional Cuts Expected Later

Paramount Skydance is set to initiate significant workforce reductions this week, with approximately 1,000 employees expected to be laid off, primarily within the U.S. The cuts, confirmed by sources familiar with the company’s plans, mark the initial phase of a broader restructuring effort following the recent merger between Paramount Global and Skydance Media. Further layoffs are anticipated in the near future as the company aims to streamline operations and achieve substantial cost efficiencies.

Immediate Workforce Adjustments at Paramount Skydance

The initial wave of layoffs at Paramount Skydance is scheduled to impact around 1,000 positions, predominantly located in the United States. These reductions are slated to occur on Wednesday, October 29. While this represents a considerable number, it is understood to be the first of several phases of staffing adjustments. Insiders suggest that the company intends to eliminate a total of approximately 2,000 jobs across its U.S. operations, with additional international cuts also planned as part of the ongoing integration process.

Strategic Rationale: Cost Savings and Merger Integration

These extensive job cuts at Paramount Skydance have been a widely anticipated outcome of the merger between Skydance Media and Paramount Global. The deal, which officially closed, included a stated objective of achieving upwards of $2 billion in cost savings. This substantial reduction in operational expenses is central to the newly combined entity’s strategy for navigating a challenging and evolving media landscape.

Following the $8 billion Skydance-Paramount merger, Jeff Shell, the President of Paramount Skydance, addressed reporters, indicating that cost-cutting measures and layoffs would be implemented swiftly. Shell noted that details regarding these reductions would be disclosed in conjunction with the company’s third-quarter 2025 earnings report. Paramount Skydance is scheduled to release its Q3 financial results on November 10, after the market closes, providing further insight into the financial implications and strategic direction.

David Ellison’s Vision and Industry Challenges

David Ellison, founder of Skydance Media and now Chairman and CEO of Paramount Skydance, has expressed ambitious plans for the newly formed entertainment conglomerate. His vision includes strengthening the company’s competitive position against major streaming platforms like Netflix, as well as tech giants such as Apple and Amazon, which have made significant investments in content. Ellison has reportedly pursued a potential deal with Warner Bros. Discovery to create an even larger rival, though Warner Bros. Discovery has, to date, not accepted these overtures.

Under Ellison’s leadership, Paramount Skydance has already made several high-profile strategic moves. The company secured an exclusive seven-year deal for UFC rights, valued at $7 billion. Furthermore, it successfully attracted “Stranger Things” creators, the Duffer Brothers, from Netflix with a new four-year exclusive agreement to develop films, series, and streaming content. Some of Ellison’s decisions have drawn scrutiny, such as the reported $150 million acquisition of The Free Press and the subsequent appointment of its founder, Bari Weiss, as editor-in-chief of CBS News, despite her limited television experience.

These aggressive maneuvers underscore Ellison’s willingness to be proactive in a dynamic industry. However, Paramount Skydance faces systemic challenges common to many traditional media giants. Revenues continue to decline as audiences shift away from conventional cable and broadcast television in favor of streaming services. Additionally, the theatrical film business is still in a recovery phase following the impacts of the COVID-19 pandemic, further complicating the financial outlook for major studios. The ongoing layoffs are a direct response to these multifaceted pressures and the strategic imperative to adapt to a transformed entertainment ecosystem.

Conclusion

The impending layoffs at Paramount Skydance represent a significant phase in the company’s post-merger integration and strategic realignment. While undoubtedly difficult for the employees affected, these reductions are presented as a necessary step to achieve substantial cost savings and position the new entity for future competitiveness. As David Ellison steers the company with bold acquisitions and ambitious expansion plans, Paramount Skydance grapples with the pervasive challenges of audience fragmentation and evolving consumption habits in the global entertainment market. The full impact of these strategic shifts and workforce adjustments will likely become clearer following the company’s upcoming financial disclosures.