Paramount has commenced what CEO David Ellison calls “significant change” with the layoff of approximately 1,000 employees this week, marking the beginning of a brutal restructuring phase following the entertainment giant’s $8.4 billion merger with Skydance Media. The cuts, which began Wednesday morning, represent roughly 5% of the company’s workforce and signal the start of an aggressive cost-cutting campaign that will ultimately eliminate around 2,000 positions.
Table of Contents
The Scale and Scope of Paramount’s Workforce Reduction
The current wave of layoffs at Paramount primarily targets U.S.-based employees across multiple divisions, though international staff are also expected to face reductions in the coming weeks. Sources familiar with the situation confirm that another 1,000 layoffs will follow at a later date, bringing the total workforce reduction to approximately 10% of the company’s employee base.
| Layoff Phase | Number of Jobs | Timeline | Scope |
|---|---|---|---|
| First Wave | 1,000 employees | Week of October 27-29, 2025 | Primarily U.S.-based staff |
| Second Wave | 1,000 employees | To be determined | Company-wide, including international |
| Total Impact | ~2,000 jobs | Through Q4 2025 | ~10% of workforce |
In a memo to employees obtained by industry publications, Paramount CEO David Ellison acknowledged the difficulty of the situation while defending the necessity of the cuts. “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.
Strategic Rationale Behind the Cuts
The layoffs are part of Paramount’s ambitious plan to achieve $2 billion in annual cost savings following the Skydance merger. This restructuring effort comes as the entertainment industry grapples with declining linear television revenues and the challenging economics of the streaming transition.
Key Factors Driving the Layoffs:
Post-Merger Integration: The August 2025 completion of the $8.4 billion Skydance-Paramount merger created significant organizational redundancies that needed to be addressed.
Industry-Wide Pressures: Traditional media companies face mounting challenges as audiences continue migrating from cable and broadcast television to streaming platforms.
Profitability Push: Paramount is under pressure to demonstrate financial viability in the streaming era, following years of heavy investment with limited returns.
Technology Integration: The company plans to transition to a unified technology platform, consolidating Paramount+ and Pluto TV operations.
Previous Workforce Reductions Set the Stage
These latest cuts build upon Paramount’s existing cost-reduction efforts. Under previous leadership, the company had already implemented three waves of layoffs in late 2024, reducing its U.S. workforce by approximately 15%. As of December 2024, Paramount employed 18,600 full- and part-time staff globally, down from 24,500 just two years earlier.
| Layoff Period | Workforce Reduction | Cost Savings Target |
|---|---|---|
| Late 2024 | 15% of U.S. workforce (~2,000 jobs) | $500 million annually |
| June 2025 | 3.5% of domestic workforce | Undisclosed |
| October 2025 | ~2,000 additional jobs | Part of $2 billion target |
The pattern reveals a systematic approach to workforce reduction that began well before the Skydance merger, suggesting deep structural challenges within the traditional media business model.
David Ellison’s Vision and Investment Strategy
Despite the significant job cuts, Paramount under David Ellison has simultaneously made substantial investments in content and technology. The apparent contradiction reflects Ellison’s strategy of redirecting resources from traditional operations toward growth areas.
Recent major investments include:
- $7.7 billion seven-year deal for exclusive UFC broadcasting rights
- $150 million acquisition of The Free Press media outlet
- Four-year exclusive partnership with the Duffer Brothers (creators of “Stranger Things”)
- Film partnership with Activision to adapt the Call of Duty franchise
“We want to be as open and direct as possible about the reasons behind these changes,” Ellison explained in his employee memo. “In some areas, we are addressing redundancies that have emerged across the organization. In others, we are phasing out roles that are no longer aligned with our evolving priorities.”
Industry Context: Media Sector in Crisis
Paramount’s layoffs are part of a broader crisis affecting the entertainment industry. According to data from Challenger, Gray & Christmas, the media sector eliminated nearly 15,000 jobs in 2024 alone, following 21,417 job cuts in 2023.
Major Media Layoffs in 2025:
- Disney: 200 employees from ABC News Group and Entertainment Networks
- Warner Bros. Discovery: Cable division cuts
- CNN: Approximately 200 positions
- Amazon Studios: Hundreds of jobs in consolidation efforts
- Meta: 5% workforce reduction announced
The trend reflects fundamental challenges facing traditional media companies as they navigate the transition from linear broadcasting to streaming while dealing with declining advertising revenues and increased competition from tech giants like Netflix, Apple, and Amazon.
Financial Implications and Market Response
The layoffs are expected to contribute significantly to Paramount’s goal of $2 billion in annual cost savings. President Jeff Shell, the former NBCUniversal CEO now leading day-to-day operations, emphasized the efficiency focus during an August press conference.
“We don’t want to be a company that has layoffs every quarter,” Shell stated, suggesting the current cuts are designed to be comprehensive rather than ongoing. The company is scheduled to report third-quarter earnings on November 10, when more details about the financial impact and future strategy are expected.
Employee Impact and Support Measures
While the scale of the layoffs is substantial, Paramount has implemented support measures for affected employees. The company’s HR team is working with business unit leaders to provide information about benefits and transition services.
The memo from CEO Ellison acknowledged the human cost: “We recognize these actions affect our most important asset: our people.” The company has promised to provide detailed information about severance packages and career transition support.
Looking Ahead: Paramount’s Future Strategy
The current layoffs represent just one element of Paramount’s broader transformation strategy under Ellison’s leadership. The company is positioning itself as a “tech-forward” entertainment entity that combines “the creative heart of Hollywood with the innovative spirit of Silicon Valley.”
Key strategic priorities include:
- Streaming Platform Unification: Merging Paramount+ and Pluto TV onto a single technology stack
- Global Expansion: Scaling streaming services internationally
- Content Investment: Increasing volume of films, TV series, sports, and gaming content
- Technology Integration: Leveraging AI and virtual production capabilities
Broader Industry Implications
Paramount’s aggressive restructuring sends a strong signal about the entertainment industry’s new reality. The combination of technological disruption, changing consumer preferences, and economic pressures has created an environment where even major studios must dramatically reshape their operations to survive.
The success or failure of Ellison’s strategy will likely influence how other media companies approach similar challenges. With Warner Bros. Discovery reportedly reviewing strategic alternatives and other media giants facing similar pressures, Paramount’s transformation could serve as either a blueprint for success or a cautionary tale.
The layoffs at Paramount represent more than just cost-cutting measures; they signal a fundamental shift in how entertainment companies must operate in the digital age. As CEO David Ellison works to transform the century-old studio into a modern media powerhouse, the human cost of this transformation serves as a stark reminder of the challenges facing traditional entertainment companies in an increasingly competitive and technology-driven marketplace.
FAQs
How many total jobs will Paramount eliminate?
Paramount plans to cut approximately 2,000 positions total – 1,000 this week and another 1,000 at a later date, representing about 10% of the company’s workforce.
Why is Paramount laying off employees after a major merger?
The layoffs are part of a $2 billion cost-saving initiative following the $8.4 billion Skydance merger, aimed at eliminating redundancies and repositioning the company for profitability in the streaming era.
Which Paramount divisions are most affected by the layoffs?
The cuts are company-wide, but divisions tied to linear TV operations (cable networks and broadcast) are expected to be most heavily impacted, while streaming and technology areas may see growth.
Are these layoffs part of a broader industry trend?
Yes, the media industry eliminated nearly 15,000 jobs in 2024, with major companies like Disney, Warner Bros. Discovery, and Amazon also implementing significant workforce reductions.
What support is Paramount providing to laid-off employees?
The company is offering transition services, benefits information, and severance packages through its HR team, working with business unit leaders to support affected staff during the transition.
