Paramount Skydance is firing 10% of its workforce
What's the story
Hollywood giant Paramount Skydance has begun a massive layoff process, with CEO David Ellison confirming the move in an internal memo. The first round of cuts saw some 1,000 US-based employees let go, and another 1,000 are expected to follow soon. Together, the layoffs account for nearly 10% of the company's total workforce.
Layoff rationale
Ellison explains the reason behind the layoffs
In his memo, Ellison explained the reason behind these layoffs. He said, "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." He added some redundancies were being addressed across the organization while other roles were being phased out as they no longer aligned with evolving priorities.
Merger impact
Layoffs follow Paramount-Skydance merger
The layoffs come almost three months after the $8.4 billion merger of Paramount and Skydance. Executives at the merged firm have promised Wall Street they would deliver $2 billion in cost savings, partly through workforce reductions. Along with cutting the jobs, the company is also looking to reduce its real estate holdings and divest certain businesses.
Business strategy
Paramount is making big deals
Despite the layoffs, Paramount has made some big deals. The company recently secured exclusive rights to UFC for $7.7 billion and renewed its contract with South Park creators Trey Parker and Matt Stone for $1.5 billion. These strategic moves are part of Ellison's vision to position Paramount as a strong player in the industry despite the ongoing layoffs and restructuring efforts.