Paramount executives may be thrilled about nearing the finish line on the merger with Skydance, but things are not looking as bright for the employees. Paramount is expected to conduct layoffs that will affect around 2,000 to 3,000 of its staff by November. The Paramount-Skydance job cuts are part of the sweeping changes meant to make this union a success-driven one.
Paramount was reported to have almost 18,600 employees at the end of 2024, along with 3,500 project-based staff. The November job reduction plans have not been finalized as the number of cuts could ultimately vary, but the layoffs appear inevitable. The future of these employees hangs in the balance as they await news of the cuts that are on their way.
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Paramount Layoffs Overshadow the News of a Successful Merger
Paramount Global and Skydance Media announced the merger last year, but have since faced major roadblocks that repeatedly halted matters from proceeding further. After multiple delays, the joint force of Paramount Skydance Corp. was finally formalized earlier this month through an $8.4 billion merger. According to The New York Post, Jeff Shell, an internal candidate now moving to the position of Paramount president, told managers across various productions to start working on a “kill list” to guide the November job reductions.
The employees identified by the list will receive layoff notices in October, which will allow around 3,000 jobs to be cut by November. The Paramount layoffs will likely save the company over $2 billion, which is the ultimate goal of the cuts. Shell stated that while the cuts will be “painful,” it is better to take care of the necessary reorganization goals in one fell swoop. “We do not want to be a company that has layoffs every quarter,” he told journalists at a Los Angeles press conference.
The Paramount-Skydance merger’s impact goes beyond layoffs. The companies have jointly established a new executive team to lead the organization, which has included promotions for some and new positions for others. The change in management will allow the merged forces to set a new direction to set sail on, but it will also mean considerable discomfort for the employees.
Mergers and Management Evolutions, A Tale as Old As Time
The Paramount layoffs are targeting 3,000 employees, but those aren’t the only ones affected by the changes occurring right now. With such a widespread overhaul of the organizational systems, employees who get to stay on will also have to face structural and managerial alterations over the next few months. Acclimating to the changes that come with a new leader at the helm is never easy, and it requires considerable work to ensure every employee is aware of, and on board with, the changes.
The Paramount-Skydance merger’s impact will be felt by employees consistently over the next year. HR teams have a lot to take charge of in this situation, sharing information steadily without overwhelming workers with change. In time, the company will likely have to re-evaluate its workforce to sweep up any remaining excesses and redundancies, which will leave workers anxious about future layoffs.
Understanding their concerns and providing them with clear answers can go a long way in ensuring that the merged companies transition into a unified force successfully. This is where HR will have a hand in planning ahead and making multiple necessary changes to save the day.
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