Paramount Skydance Stock Rises Over 1% Premarket After Report Says First Layoffs Post Merger Would Come In Late October

Shares of Paramount Skydance Corp. (PSKY) climbed over 1.30% in Monday’s early premarket session as traders reacted to reports that media giant may announce a round of layoff as early as this month.

Media giant Paramount merged with David Ellison-led Skydance on Aug. 7 and following the merger, the new leadership signaled its intention to streamline operations, including effecting job cuts, to achieve post-merger cost savings of $2 billion. 

Job Shock Comes Early

A Deadline report, citing sources, stated on Friday that Paramount Skydance would announce the layoffs, numbering 2,500-3,000, by the week of Oct. 27, ahead of the earnings date of Nov. 10. The company had earlier hinted that the cuts would be announced in early November. Around 2,000 positions will be eliminated in the U.S., while the number of overseas employees who would be impacted is yet to be determined.

The layoffs would continue through the year end and impact workforce across theatrical, streaming, linear and all other divisions, the report said, adding that key executives have already departed. According to the report, Paramount has about 18,000 employees worldwide and Skydance’s payrolls boast under 2,000 people.

The development comes amid Paramount Skydance’s rumored interest in acquiring rival Warner Bros. Discovery (WBD) through a $60 billion deal.

What Retail’s Feeling About Job Cuts

Most users shrugged off the eliminations, stating that it was part of the merger announcement and that it would make PSKY as a profitable company. Some took potshot at the media for hyping up the news to “provoke a short bear raid.”

Paramount Skydance stock has gained about 52% since the merger was completed. Last week, Argus initiated coverage of Paramount Skydance stock with a 'Hold' rating, the Fly reported. Paramount's new management will need to prove the company can profitably produce and distribute compelling premium content, analysts at the firm said.

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