Paramount set for one-off mass layoffs to meet $2bn savings goal

Paramount Global is preparing for significant layoffs under its new ownership, as part of a cost-cutting initiative aimed at saving $2 billion, according to a Deadline report. The move follows the $8.4 billion acquisition of the media company by David Ellison’s Skydance Media from Shari Redstone, a transaction that closed last month.

The planned cuts come only weeks after Paramount committed more than $9 billion to high-profile agreements, including a long-term content deal with the Ultimate Fighting Championship (UFC) and a renewed partnership with the creators of South Park. These moves signal an aggressive, if costly, bid to strengthen the company’s streaming and content portfolio even as it undergoes a painful restructuring.

At a press conference in Los Angeles on Wednesday, Paramount president Jeff Shell, joined by CEO Ellison and senior executives — including Paramount+ head Cindy Holland, TV Media chief George Cheeks, film division leaders Dana Goldberg and Josh Greenstein, and COO Andy Gordon — set out the strategy for the months ahead.

“We do not want to be a company that has layoffs every quarter,” Shell said, according to Deadline. Criticising the previous management’s approach to trimming costs, he likened it to “water torture”, with small, repeated rounds of cuts. Instead, the company aims to carry out what he called “one big thing” to avoid prolonged uncertainty for employees.

Ellison, who took the reins just a week earlier, said the layoffs could even exceed the $2 billion target. While no specific numbers or dates were given, the potential scale is significant given that Paramount and Skydance together employ about 18,000 people.

Commitment to staff communication

Both Ellison and Shell stressed the importance of direct communication with employees before making any public announcements. “We’re going to talk to team members first before talking to anybody else,” Ellison told reporters.

The same message was delivered earlier that day at an internal town hall, where the leadership team met staff to address concerns. Ellison and Shell repeated their belief — voiced in a media appearance in New York earlier this week — that companies cannot “cut their way to growth”, even as they prepare for the most substantial restructuring in Paramount’s recent history.

Ellison said his leadership approach would be “straightforward and honest” throughout the process, a tone aimed at reassuring staff during what is expected to be a turbulent transition.

The company has not confirmed when further details of the restructuring will be made public. 

Meanwhile, employees and investors alike are awaiting clarity on which divisions will be most affected, and how the changes will align with Paramount’s broader strategy.