After completing its merger with Skydance this month, Paramount is now reportedly planning major staff and service reductions. According to sources with insight into the company's operations, between 2,000 and 3,000 employees are expected to lose their jobs before November. In other words, just ahead of Paramount's quarterly earnings report - a moment that also marks the beginning of a new era focused on cost reduction.
The layoffs come as little surprise. Paramount's leadership has previously signaled that it aims to cut at least $2 billion in costs in connection with, and immediately following, the merger. Skydance founder David Ellison has also stepped in as the new CEO and chairman of Paramount Skydance, supported by a new executive team that includes industry heavyweights like Jeff Shell from NBCUniversal, Cindy Holland, Dana Goldberg, and Josh Greenstein.
The merger also gives Ellison control of several major franchises, including Star Trek, South Park, SpongeBob SquarePants, Teenage Mutant Ninja Turtles, and Top Gun. On top of that, he has secured a seven-year exclusive UFC rights deal worth $7 billion and managed to lure the Stranger Things creators away from Netflix.
Whether this will mark the start of a stronger and more successful era for Paramount remains to be seen. Sadly, for the thousands of employees affected, the outlook is far more uncertain - and they now face an abrupt and difficult transition.