Takeaways
- Paramount is cutting about 2,000 jobs — roughly 10% of its workforce — following its merger with Skydance.
- CEO David Ellison said the layoffs are part of a restructuring effort to build a “future-focused” company.
- The move aims to save $2 billion in post-merger costs and streamline operations.
- Paramount is also offloading assets, including Telefé, and has secured major new content deals with UFC and the creators of South Park.
- The layoffs follow multiple corporate job cuts across the U.S., including at Amazon and UPS, as companies increasingly turn to AI-driven efficiencies.
Paramount Cuts 2,000 Jobs After Skydance Merger
Paramount Global began a sweeping round of layoffs Wednesday, letting go of about 1,000 U.S.-based employees in the first phase — with another 1,000 job cuts expected soon. The reductions come just three months after Paramount officially merged with Skydance Media in an $8.4 billion deal.
The layoffs represent about 10% of Paramount’s total workforce, as the newly merged company seeks to save $2 billion through restructuring and workforce reductions.
CEO David Ellison confirmed the move in a memo to employees, writing that the changes are “necessary to position Paramount for long-term success.”
“When we launched the new Paramount in August, we made clear that building a strong, future-focused company would require significant change — including restructuring the organization,” Ellison wrote.
“Ultimately, these steps are necessary to position Paramount for long-term success.”
Why Paramount Is Cutting Jobs
Ellison explained that the layoffs are driven by two main factors:
- Redundancies after the merger — overlapping teams and departments between Paramount and Skydance.
- Shifting priorities — some roles no longer fit with the company’s new structure and growth strategy.
Paramount plans to focus on profitability and efficiency, reducing operational costs and investing in new content and technology.
The company has already begun trimming assets, including the sale of Argentinian broadcaster Telefé for about $100 million, far below the $345 million Viacom originally paid in 2016.
Merging for a “Stronger Future”
Despite the layoffs, Ellison insists the long-term outlook remains positive. He emphasized the goal of building a “future-focused company” ready to compete in an increasingly digital and AI-driven media environment.
As part of that transformation, Paramount has signed major entertainment deals, including:
- A $7.7 billion contract with UFC, securing exclusive rights to broadcast mixed martial arts events.
- A $1.5 billion renewal with South Park creators Trey Parker and Matt Stone, finalized shortly before the merger closed.
These moves, Ellison said, are designed to strengthen Paramount’s content library and attract global audiences across film, television, and streaming.
A Tough Labor Market Across Media
Paramount’s layoffs come amid a wave of corporate downsizing across the U.S. economy.
This week alone:
- Amazon confirmed up to 30,000 corporate job cuts.
- UPS and Target announced major reductions in staff.
- Companies like General Motors and Booz Allen Hamilton are following suit.
Many of these organizations cite AI integration and automation as key reasons for streamlining operations. The entertainment industry, too, is embracing AI to manage production logistics, script analysis, and audience engagement — all of which can reduce demand for certain roles.
What It Means for Entertainment Professionals
For filmmakers, actors, and production staff, Paramount’s layoffs signal broader industry changes:
- Consolidation & Efficiency: Large studios are prioritizing leaner operations after mergers, reducing staff but investing in scalable tech.
- AI Transformation: Expect more automation in production management, marketing, and editing — areas traditionally handled by human teams.
- Fewer Corporate Openings: Jobs in administrative and development sectors are likely to decline, but content creation and freelance opportunities remain strong.
- Independent Productions Rising: As major studios slim down, independent producers and streamers may absorb displaced talent — meaning Project Casting users can expect new openings in smaller, agile studios.
Ellison’s Vision: Reshape & Regain Stability
Paramount’s leadership remains committed to restoring profitability after years of restructuring. Ellison’s memo acknowledged the personal impact of the layoffs while expressing confidence in the company’s direction.
“We recognize these actions affect our most important asset — our people,” Ellison wrote.
“We are committed to supporting all employees through this transition. Paramount’s best days are ahead.”
The company’s Human Resources team will provide transition support, severance details, and benefits information for affected employees.
The Road Ahead
The layoffs are just one part of Paramount’s post-merger realignment. The company is also expected to explore additional mergers and acquisitions — including CEO Ellison’s repeated offers to acquire Warner Bros. Discovery (WBD). Although WBD rejected those bids, Ellison is expected to continue pursuing potential deals as the entertainment landscape consolidates further.
As Paramount shifts its strategy, entertainment professionals can expect both disruption and opportunity. For Project Casting’s community, now is the time to adapt, upskill, and seek out new creative partnerships emerging from the industry’s evolution.
Stay informed and find your next casting or production opportunity at: https://www.projectcasting.com
