Following the recent merger of Skydance Media and Paramount Global, employees at the newly formed Paramount Skydance are bracing for significant, across-the-board job cuts. These layoffs, confirmed by Variety, are a direct consequence of David Ellison’s new management regime and his team's ambitious goal to slash upwards of $2 billion in costs, a target set even before the merger officially closed. The culling, initially anticipated for early November, is now underway during the week of October 27, impacting approximately 2,000 jobs in the U.S. alone, with further reductions expected internationally.

Jeff Shell, the former CEO of NBCUniversal and now President of Paramount Skydance, addressed reporters on August 7 in New York, just hours after the $8 billion Skydance-Paramount merger concluded. He stated that the company would implement cost reductions and layoffs as swiftly as possible, with full disclosures planned for the company’s third-quarter 2025 earnings report, scheduled for November 10 after market close. This restructuring comes as traditional media giants like Paramount, which encompasses CBS, Paramount Pictures, Paramount+, Pluto TV, MTV, Comedy Central, Nickelodeon, and BET, continue to face declining revenues from traditional advertising and distribution as audiences shift towards streaming platforms.

Paramount's workforce has already seen significant reductions prior to the Skydance deal. The company's 10-K annual filing with the SEC indicated approximately 18,600 full- and part-time employees across 32 countries as of December 31, 2024, a considerable drop from 24,500 two years earlier. In June, before the Skydance acquisition, Paramount had also initiated a 3.5% reduction of its domestic staff. Skydance Media itself maintains a team of "more than 500" employees, suggesting a concentrated effort to streamline operations and achieve the projected $2 billion in annualized cost savings, which Shell, with the help of consulting firm Bain & Co., indicated would largely come from the linear TV business.

Paradoxically, even as Paramount Skydance embarks on widespread job cuts, it is simultaneously making substantial investments in content and talent. In the week following Skydance’s takeover, Paramount announced a colossal $7.7 billion seven-year deal for exclusive UFC rights, signaling a major strategic push into live sports. Further demonstrating its commitment to content, the company secured a deal with Activision to produce a movie based on the popular "Call of Duty" franchise and acquired Bari Weiss’ The Free Press for an estimated $150 million. Additionally, in a significant move to bolster its creative roster, Paramount Skydance successfully lured the Duffer Brothers, renowned creators of "Stranger Things," away from Netflix with a new four-year exclusive agreement for movies, shows, and streaming programming.

Beyond the immediate integration and cost-cutting, David Ellison, who serves as chairman and CEO of Paramount Skydance, is reportedly pursuing even larger mergers and acquisitions. He is actively aiming to acquire Warner Bros. Discovery, a move that would represent a far more substantial M&A action than the Paramount Global takeover. Although WBD is said to have rejected Paramount’s initial $20-per-share offer as insufficient, Ellison's ambition is clear. The Ellison family, notably backed by Oracle founder Larry Ellison (David’s father), holds 100% voting control over Paramount Skydance, underscoring the family's deep involvement and strategic direction.

To support this transformative period, David Ellison has also appointed several key C-level executives since the deal closed. These include Makan Delrahim, who previously advised Skydance on the Paramount Global acquisition, as chief legal officer; former Meta executive Dane Glasgow as chief product officer; and Roku’s Jay Askinasi as chief revenue officer. Other notable appointments include Cindy Holland, Dana Goldberg, and Josh Greenstein, who are expected to play pivotal roles in Paramount’s streaming and film divisions. George Cheeks, who oversaw CBS before the merger, has retained a significant position within the company, now holding the title of "Chair of TV Media." This new leadership team is poised to guide Paramount Skydance through its significant operational and strategic overhaul.