Paramount Skydance Plans Significant Layoffs
Starting Wednesday, Paramount Skydance will begin the process of laying off 1,000 employees. This initial wave is part of a larger effort that aims to reduce around 2,000 jobs in total, as CEO David Ellison seeks to achieve $2 billion in cost reductions.
These layoffs mark the first substantial restructuring following the $8.4 billion merger between Skydance Media and Paramount Global, which was completed in August, thus forming a new powerhouse under Ellison’s leadership.
Bloomberg reported earlier that the company plans to make immediate cuts to stabilize operations. I mean, quick action seems to be the order of the day, right?
Paramount President Jeff Shell expressed concerns about the impact of such reductions, indicating that they don’t want to make layoffs a quarterly occurrence, noting, “That’s why it hurts.”
In the lead-up to these layoffs, department heads had been tasked with compiling a “kill list,” with some insiders anticipating an intense wave of dismissals next month.
The pending job cuts are part of a broad initiative by Ellison and Shell to consolidate Paramount’s various traditional businesses, such as CBS and Nickelodeon, aiming to streamline into a more efficient structure.
More details on what the reorganization entails are expected soon, particularly as the company prepares to announce its third-quarter financial results on November 10.
As of December, Paramount had around 18,600 full-time and part-time employees, along with an additional 3,500 project-based staff globally.
Ellison stepped into the CEO role after orchestrating the merger, largely supported by financial backing from his father, Larry Ellison, co-founder of Oracle. It’s interesting how family connections play a role in these things, huh?
Shell, previously with NBCUniversal and now President of Paramount Skydance, had indicated back in August that layoffs would be forthcoming, collaborating with Bain & Company to pinpoint where $2 billion can be saved annually, much of which is focused on the struggling linear television sector.
Before this merger, there were already some reductions in place, including a 3.5% cut to the domestic workforce in June.
No comment has been provided from Paramount Skydance regarding this situation.
