Paramount Skydance Corp is preparing for significant job cuts, according to a report from Variety. The company is expected to eliminate between 2,000 and 3,000 jobs by early November.
The layoffs would follow the recent $8.4 billion merger between Paramount Global and Skydance Media, which was completed earlier this month. The merged company now operates under the name Paramount Skydance Corp.
According to Variety, the planned reductions will affect workers across several divisions. The final number has not been set, but early estimates suggest as many as 3,000 jobs may be lost.
As of December 2024, Paramount employed nearly 18,600 full-time and part-time staff, in addition to 3,500 project-based workers. The cuts would represent a significant portion of its total workforce.
Paramount Skydance has not offered public comment on the report. When asked, representatives of the company declined to provide details or confirm how many workers would be impacted.
The merger was first announced more than a year ago and has been closely followed by investors and analysts. With the deal now complete, industry experts expect large changes to streamline operations and reduce costs.
Media consolidation has become common in recent years as major studios face pressure from streaming competitors and declining traditional television audiences. Job reductions often follow mergers, as companies seek efficiency.
Some analysts view the move as predictable. “When two major entertainment firms combine, duplicate roles are almost always cut,” said one Los Angeles-based media consultant. “The job losses are unfortunate but expected.”
The expected layoffs come during a time of major strategic moves for Paramount Skydance. Earlier this week, the company announced a $7.7 billion agreement to secure exclusive U.S. broadcast rights for the Ultimate Fighting Championship for seven years.
That deal marked the first major initiative of the combined firm and showed a clear push into live sports programming, which is considered a strong growth area for broadcasters and streaming platforms.
Industry watchers see the UFC agreement as an effort to compete more directly with companies like Disney and Warner Bros Discovery, both of which have invested heavily in sports rights.
While the UFC deal drew attention, concern about job cuts has overshadowed the announcement inside the company. Workers are now bracing for a wave of layoffs that could hit in less than three months.
Union groups and employee advocates have also raised concerns about the scale of potential cuts. Several industry organizations have warned that losing thousands of entertainment jobs will hurt both Hollywood and regional offices.
Paramount, before the merger, had been under pressure due to rising costs and competition in the streaming sector. Its streaming service Paramount+ has grown, but profitability remains a challenge.
Executives at both Paramount and Skydance had previously said the merger would create savings by combining teams, systems, and production pipelines. Analysts now expect the job cuts to be part of those savings.
While neither Paramount Skydance nor its executives have provided details, many insiders believe the cuts will be announced in waves through October before final decisions in November.
The entertainment sector has faced several rounds of staff reductions across major studios over the past two years. Warner Bros Discovery, Disney, and Netflix have all cut staff to manage costs.
The wider industry has also been impacted by changing viewing habits. As audiences shift away from cable television, studios are fighting for subscribers and ad revenue in a crowded streaming market.
The potential loss of thousands of jobs highlights the ongoing transformation of Hollywood. Mergers and acquisitions may create stronger firms on paper but often come at a high cost for workers.
For now, Paramount Skydance is moving ahead with its focus on growth areas such as live sports, high-profile film projects, and streaming expansion. Staff, however, remain uncertain about the months ahead.
No timeline has been confirmed for official announcements. Until then, workers across departments will be waiting to learn if they will be among those affected by the cuts.
The coming weeks will determine how deep the reductions go, but industry experts agree that the merger will reshape Paramount Skydance and its workforce in lasting ways.
