Joining the recent wave of layoffs, Paramount Skydance is expected to announce 1,000 job cuts on Wednesday, a Bloomberg report said citing sources familiar with the matter. The report further added that a second round of layoff will be announced later which will take the total number of job cuts to 2,000.
Reason behind Paramount Skydance laying off 2,000 employees
The news of layoffs come just weeks after Skydance Media and Paramount Global officially joined hands in an $8.4 billion merger. The move is reportedly a part of efforts to turn the company into a new entertainment giant under CEO David Ellison. Since the merger, Ellison and President Jeff Shell have been open about their plan to cut costs and rebuild the company’s structure. “We do not want to be a company that has layoffs every quarter,” Shell said shortly after the merger. “So, it’s going to be painful.” A person familiar with the company’s plans informed Bloomberg, the goal is to act quickly and bring stability after months of uncertainty.
Trimming $2 billion in costs
The new management is aiming to cut around $2 billion in annual expenses. To do that, they’ve hired consulting firm Bain & Co. to identify areas where those savings can come from. A big chunk is expected to come from the company’s traditional TV networks, which have been struggling for years.
According to Bloomberg, the first 1,000 layoffs will happen this week. Paramount Skydance currently employs around 18,600 full- and part-time workers worldwide, plus about 3,500 project-based staff, as per its last SEC filing.
Before the merger, Paramount had already reduced 3.5% of its US workforce back in June. The company is expected to share more details about its restructuring plans when it reports third-quarter earnings on November 10.
Inside CBS
The merger has also brought several changes to CBS News, one of Paramount’s oldest and most recognised divisions. Earlier this month, Bari Weiss, founder of The Free Press and known for her critiques of mainstream media, was appointed editor-in-chief of CBS News.
Meanwhile, veteran anchor John Dickerson announced on social media that he’s leaving the network by the end of the year. Dickerson, who’s been with CBS for 16 years, shared a note saying, “I am extremely grateful for all that CBS gave me, the work, the audience’s attention and the honour of being a part of the network’s history,” he wrote.
Paramount Skydance hasn’t commented publicly on the layoffs, but executives believe this round of cuts is meant to be the last major one, at least for now.
