Paramount Skydance Starts Major Layoffs, 10% Of Workforce To Be Cut: Report

• The first round of layoffs are expected to impact 1,000 employees in the U.S. across Paramount’s divisions. 
• The second round of layoffs will reportedly come later, and impact international employees as well.
• According to CEO David Ellison, the job cuts are aimed at removing ‘redundancies’ or roles that are no longer aligned with the company’s priorities.

Paramount Skydance (PSKY) is reportedly set to begin laying off more than 2,000 employees on Wednesday as the merger between Paramount and Skydance executes the anticipated restructuring.

PSKY’s stock edged 0.8% higher in pre-market trade, with retail sentiment on Stocktwits rising into ‘bullish’ territory over the past day. However, chatter tempered to ‘normal’ from ‘high’ levels during the same time span.

First Round Of Layoffs To Affect CBS, MTV, Nickelodeon

According to a report by The New York Times, Paramount is planning to cut roughly 10% of the combined company. It cited an internal announcement by CEO David Ellison, in which he said the initial round of job cuts will affect around 1,000 employees in the U.S. across many of Paramount’s divisions, including CBS News, MTV, Nickelodeon, and others. 

“These decisions are never made lightly, especially given their effect on our colleagues who have made meaningful contributions to the company.”

— David Ellison, CEO, Paramount Skydance

The rest of the cuts, some of which will affect international employees as well, will come later.

Paramount Removing ‘Redundancies’

Ellison reportedly said the job cuts across the organization are focused on eliminating redundant positions or those no longer aligned with Paramount’s new priorities.

"In some areas, we are addressing redundancies that have emerged across the organization," Ellison wrote. "In others, we are phasing out roles that are no longer aligned with our evolving priorities and the new structure designed to strengthen our focus on growth."

The layoffs come after Skydance announced its $8 billion merger with Paramount last year. At the time, Skydance said it was looking to $2 billion in ‘synergies,’ which analysts on Wall Street translated into ‘cost cutting.’ Then in September, Paramount announced that employees would be expected to return to the office and work five days a week – anyone who chose not to return would be eligible for a severance package.

Paramount Skydance has also reportedly been exploring a merger with Warner Bros Discovery (WBD) before its cable-TV assets are spun off into a standalone entity. 

Read also: Bitcoin Slips Ahead Of Fed Rate Cut Decision — Ethereum, Dogecoin Lead Declines

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