Paramount to Lay Off 1,000 Employees in Major Restructuring

Paramount is set to cut 1,000 jobs this Wednesday as part of a significant restructuring under the new leadership of CEO David Ellison. According to reports, the layoffs will impact the company’s nearly 2,000 employees. TheWrap shared that further job reductions may occur later as the company—now under Skydance ownership—aims to trim $2 billion in overhead costs. Before the acquisition, Paramount was already planning to save $500 million.

These layoffs will result in a 15% reduction in headcount across several areas, including communications, advertising, and Paramount Television Studios. Additionally, another round of cuts, affecting about 3.5% of employees, is linked to the downturn in the traditional television sector.

By the end of 2024, Paramount is projected to employ roughly 18,600 people, along with around 3,500 project-based staff in 32 countries. Skydance, in contrast, reportedly has over 500 employees.

Back in August, Paramount President Jeff Shell indicated these cuts were imminent. “Layoffs are always difficult, but we aim to avoid frequent cuts,” he remarked then, emphasizing the intention to execute the changes as one significant action.

David Ellison, who recently became the CEO of Paramount Skydance following an $8 billion merger, is constructing a media empire encompassing Paramount’s film and television assets, along with CBS, and potentially interests in TikTok’s U.S. operations. This merger followed a $16 million settlement concerning allegations of bias at CBS News. Skydance values having varied perspectives within its operations.

Earlier this month, Ellis appointed Bari Weiss as editor-in-chief of CBS News, indicating a fresh direction for the company’s news division.