Paramount expands layoffs to 1,600 as Ellison targets $3 billion in savings

The Los Angeles Times reported that Paramount Global will cut an additional 1,600 jobs, marking the latest in a string of layoffs under new chairman and chief executive David Ellison, as the studio undertakes a sweeping overhaul of its operations following its merger with Skydance Media.

The latest cuts, disclosed during a conference call with analysts on Monday, come less than 100 days into Ellison’s tenure and follow 1,000 layoffs last month and 800 in June, before the Ellison family’s takeover. The company said the reductions stem partly from the sale of its television assets in Chile and Argentina, as it works to “operate more efficiently.”

Ellison told analysts that Paramount’s restructuring aims to realise $3 billion in cost savings within two years — about $1 billion more than previously planned — even as the studio increases investment in key growth areas. “First and foremost, we’re focused on what we’re building at Paramount and transforming the company,” Ellison said. “There’s no must-haves for us. It’s always going to be, how do we accelerate and improve our north-star principles?”

The 42-year-old tech scion and Skydance founder completed the $8 billion merger with Paramount in August, ending the Redstone family’s control of the iconic studio. Since then, his leadership team has begun reshaping the century-old company, balancing deep cost cuts with bold bets on streaming, technology, and premium content.

Content push amid cuts

Despite the layoffs, Ellison said Paramount would boost content spending by $1.5 billion next year, nearly doubling its annual slate of film releases from eight to 15. One of his stated priorities is reversing “decades of under-investment in programming,” according to The Los Angeles Times.

The studio also plans to invest heavily in technology to support the growth of Paramount+, its streaming platform, which now has 79 million subscribers after gaining 1.4 million in the last quarter. Paramount aims to make the service profitable this year and is preparing to raise subscription prices, though executives declined to specify by how much.

At the same time, Paramount continues to face pressure from the decline of its once-lucrative cable television business, which includes Nickelodeon, MTV, and Comedy Central. The company’s third-quarter revenue remained flat at $6.7 billion, while it posted a net loss of $257 million.

Big bets, big exits

Ellison has shown willingness to spend in pursuit of growth. Paramount recently secured $7.7 billion in rights to UFC fights and committed $1.25 billion over five years to keep South Park creators Matt Stone and Trey Parker under contract. The studio also struck deals with Matt and Ross Duffer, the duo behind Stranger Things, and acquired The Free Press for $150 million, appointing its co-founder Bari Weiss as editor-in-chief of CBS News.

In a setback, however, Yellowstone creator Taylor Sheridan is leaving Paramount to develop projects for NBCUniversal, despite being under contract through 2028.

Merger ambitions

Ellison’s Paramount has also been pursuing a potential merger with Warner Bros. Discovery, a deal that could unite two of Hollywood’s oldest studios and give Paramount control of HBO Max, CNN, and the Warner Bros. lot in Burbank. Warner Bros. Discovery has reportedly rejected three offers, including a $58 billion bid, backed by Ellison’s father, billionaire Larry Ellison.

While declining to discuss merger specifics, David Ellison said any future acquisitions would serve the goal of accelerating Paramount’s transformation. For 2026, the company projects $30 billion in revenue and $3.5 billion in adjusted operating income.

Shares of Paramount closed up 1% at $15.25 on Monday before earnings were released.