Paramount Global, now under the control of David Ellison following an $8.4 billion acquisition from Shari Redstone, is preparing for significant layoffs as part of a sweeping cost-cutting initiative aimed at saving $2 billion. The announcement comes just weeks after Paramount committed over $9 billion to high-profile deals with UFC and the creators of South Park, signaling a bold but painful restructuring under its new leadership.
At a press conference in Los Angeles on Wednesday, Paramount president Jeff Shell, flanked by CEO Ellison and key executives including Paramount+ leader Cindy Holland, TV Media chief George Cheeks, film heads Dana Goldberg and Josh Greenstein, and COO Andy Gordon, outlined the company’s strategy. Shell emphasized a decisive approach, stating, “We do not want to be a company that has layoffs every quarter.” According to a report from Deadline. He took a pointed jab at the previous regime’s incremental cost-cutting measures, describing them as a “water-torture approach.” Instead, Paramount plans to execute the layoffs in “one big thing” to avoid prolonged uncertainty.
Ellison, who assumed leadership just seven days ago, acknowledged the scale of the impending cuts, suggesting they could “exceed” the $2 billion savings target. While specifics on timelines and the number of affected employees—out of Paramount and Skydance’s combined workforce of approximately 18,000—remain undisclosed, Ellison stressed transparency. “We’re going to talk to team members first before talking to anybody else,” he said during the press event, echoing promises made earlier that day at a town hall with staff.
The leadership’s stance reflects a rejection of the notion that a company can “cut its way to growth,” a sentiment Ellison and Shell reiterated from their recent New York media sit-down. Despite the tough road ahead, Ellison vowed that the tech-forward leadership team would be “straightforward and honest” with employees about the restructuring process.
The layoffs are part of a broader effort to stabilize Paramount’s financial position following its recent high-stakes investments and the acquisition by Ellison’s Skydance Media. Industry observers note that while the cuts will be painful, they are seen as a necessary step to reposition the company for long-term growth in a rapidly evolving media landscape.
As Paramount navigates this turbulent period, employees and stakeholders alike await further details on the scale and impact of the restructuring, with the promise of clarity from leadership offering some hope amid the uncertainty.
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