Read CEO David Ellison’s memo to employees
Paramount Skydance, aiming to become leaner and meaner, is laying off about 1,000 employees today, mostly in the US. David Ellison, chairman and CEO of Paramount, sent employees a memo about the companywide cuts, saying “these steps are necessary to position Paramount for long-term success.”
“We want to be as open and direct as possible about the reasons behind these changes,” Ellison wrote in the email, a copy of which was obtained by Variety. “In some areas, we are addressing layoffs that have occurred across the organization. In other areas, we are reducing roles that no longer align with our evolving priorities and the new structure designed to enhance our focus on growth. Ultimately, these steps are necessary to position Paramount for long-term success.”
The layoffs will affect Paramount’s divisions, including TV, film, streaming and corporate. After Wednesday’s pink slips, an additional wave of layoffs is expected to follow, aiming to cut about 2,000 jobs in the U.S. and abroad. All told, the layoffs will reduce the company’s workforce by about 10%.
Ellison and president Jeff Shell announced their plans to reduce Paramount’s workforce well before Skydance acquired the company, as part of their plan to cut more than $2 billion in costs.
“When we launched the new Paramount in August, we made clear that building a strong, forward-looking company would require significant changes – including restructuring the organization,” Ellison said in the Oct. 29 memo.
As of the end of 2024, Paramount reported having approximately 18,600 full- and part-time employees in 32 countries around the world. (Two years earlier, Paramount’s workforce was 24,500.) Prior to the closing of the Skydance deal on August 7, Paramount implemented additional layoffs, including a 3.5% reduction in its domestic staff in June.
Despite the staff cuts, Ellison has spent heavily on content deals since closing the deal with Paramount Skydance. That included inking a deal with the UFC worth $7.7 billion over seven years and acquiring Bari Weiss’ The Free Press for a reported $150 million.
In addition, Ellison and his financial partners are pursuing a mega deal to acquire Warner Bros. to buy Discovery and merge it with Paramount Skydance – a combination that would lead to even more job losses. After rejecting Ellison’s $23.50 per share offer for the company as a whole, WBD’s board of directors has initiated a formal M&A review process to evaluate bids from “multiple parties.”
Read Ellison’s memo to Paramount employees about the job cuts:
Dear all,
When we launched the new Paramount in August, we made it clear that building a strong, forward-looking company would require significant changes – including restructuring the organization. As part of that process, we must also reduce the size of our workforce, and we recognize that these actions impact 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 occurred across the organization. In others, we are phasing out roles that no longer align 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 notifying affected team members across the company. These decisions are never taken lightly, especially considering their impact on our colleagues who have made meaningful contributions to the company. That is why we strive to support all employees during this transition. Members of our HR team will work closely with business unit leaders to share detailed information about benefits and transition services. You can direct additional questions to: [human resources].
We are very grateful for your hard work, professionalism and resilience during this transition period. We remain confident that Paramount’s best days lie ahead, and we are committed to building a strong foundation for the future.
Thank you,
David
