Paramount’s post-merger layoffs are officially underway, with 1,000 of the company’s employees expected to make an exit. The $8.4 billion Paramount Skydance merger was a pivotal point in the legacy of the two businesses, and despite some hiccups in solidifying the union, matters were finally allowed to proceed earlier this year. Now that the deal is on track and consolidated operations are being formalized, Paramount is restructuring its workforce to get started on its plans for “building a strong, future-focused company.”
Paramount’s first round of layoffs begins this week, with additional rounds expected in November. The link between job cuts and mergers and acquisitions isn’t a new one, but the shifts in the business add to employee concerns regarding the constant inflow of change that remains out of their control.
Paramount’s post-merger layoffs clear the way for building a “strong, future-focused company” by addressing redundancies and phasing out roles. (Image: Freepik)
Paramount’s Post-Merger Layoffs Are Underway, with 1,000 Jobs on the Chopping Block
As of December 2024, Paramount is reported to have had around 18,600 full- and part-time employees, along with 3,500 project-based staff. In 2025, this is set to change. The Paramount job cuts are expected to affect roughly 5% of its headcount, with 1,000 employees in the US on their way out this week. Reports indicate that Paramount Skydance’s total layoffs for 2025 will affect 2,000 roles in the US, with additional international cuts expected later down the line.
The cuts don’t come as a surprise, as the business has been very vocal about the need for reorganization and cost cuts earlier this year, with word of possible layoffs at the forefront of the conversation over the last few months.
In August, when the Paramount Skydance merger was confirmed, Jeff Shell, the president of Paramount Skydance, announced that the business was determined to complete the “painful” but necessary cuts and changes as swiftly as possible. He added that the updates would be disclosed by its third-quarter 2025 earnings. The report is due on November 10, which suggests the majority of the cuts will be initiated by then.
“We do not want to be a company that has layoffs every quarter,” Shell had explained in the press briefing, as reported by Deadline. The merged business is hoping to cut over $2 billion in costs, and such overhauls always include some degree of workforce reductions to make it feasible. No details on the offered severance packages and employee benefits have been revealed thus far.
Addressing Redundancies and Rewriting Structures
David Ellison, the new CEO of Paramount Skydance, has big plans for the future of the company and the various ways in which the business could be refined to compete with streaming giants in the coming years. While its ambitious offer to acquire Warner Bros. Discovery was turned down, Paramount’s post-merger layoffs are a big part of the company’s strategy to clear the way for future investments.
Sharing his thoughts in a new memo to employees, the CEO clarified the reason for reducing the size of its workforce and how it could help position the business for long-term success. “In some areas, we are addressing redundancies that have emerged across the organization,” Ellison explained. “In others, we are phasing out roles that are no longer aligned with our evolving priorities and the new structure designed to strengthen our focus on growth.”
Alongside the layoffs, Paramount’s RTO policy has also been of particular note, reworking the company culture and establishing a new system of operations.
What We Can Learn from Paramount’s Restructuring Process
Ellison also acknowledged that the company’s employees were its biggest asset and that the decision to let them go was not an easy one. “We are deeply grateful for your hard work, professionalism, and resilience during this period of transition,” he added in the memo, reminding employees that HR team members would coordinate with business unit leaders to inform workers about the benefits and transition services available to them.
To help workers get answers to any pressing queries, Ellison also shared an email ID where affected workers can contact the HR team to seek the information they need during such trying times. The effectiveness of offering employees clear paths of communication will only be apparent once the emails start pouring in and HR teams are left to share information promptly, but it is a good start to building a bridge with its employees.
There is no easy way to conduct layoffs, but as far as attempts go, Ellison’s open and empathetic approach strikes the right tone, both for the employees on the way out and those who get to stay on, holding on to hope that these changes will be enough to set the business on the path to success.
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