The first round of Paramount layoffs under new CEO David Ellison began on Wednesday, impacting about 1,000 staffers, TheWrap has learned.
Another 1,000 are expected to be cut soon, ultimately representing about 10% of the newly formed company. These moves are part of Skydance’s efforts to exceed $2 billion in cost savings.
“We are addressing redundancies that have emerged across the organization” and “phasing out roles that are no longer aligned with our evolving priorities,” Ellison wrote in a memo to staff, obtained by TheWrap.
In August, Paramount president Jeff Shell warned that these first layoffs would be “painful,” but emphasized that the media giant doesn’t want to “cut its way to growth.” Prior to the merger closing, Paramount had unveiled a 2024 plan to generate $500 million in cost savings, which included layoffs over three separate phases.
That resulted in an initial 15% U.S. workforce reduction across communications, advertising and Paramount Television Studios and a subsequent 3.5% U.S. workforce reduction due to declines in the linear TV business. As of the end of last year, Paramount had approximately 18,600 employees globally and about 3,500 project-based staff, while Skydance had more than 500 employees.
You can read David Ellison’s full memo, below:
Dear All,
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. As part of that process, we must also reduce the size of our workforce, and we recognize these actions affect our most important asset: our people. We want to be as open and direct as possible about the reasons behind these changes.
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 and the new structure designed to strengthen our focus on growth. Ultimately, these steps are necessary to position Paramount for long-term success.
That said, today we begin the difficult process of informing impacted team members across the company. These decisions are never made lightly, especially given their effect on our colleagues who have made meaningful contributions to the company. To this end, we are committed to supporting all employees through this transition. Members of our HR team will be working closely with business unit leaders to share detailed information on benefits and transition services. Additional questions can be directed to [redacted].
We are deeply grateful for your hard work, professionalism, and resilience during this period of transition. We remain confident that Paramount’s best days are ahead, and we’re committed to building a strong foundation for the future.
Thank you, David
