Key Points:
- Paramount Global is preparing to lay off between 2,000 and 3,000 employees by early November, aligning with its Q3 2025 earnings report, as part of post-merger cost-cutting efforts.
- New CEO David Ellison has moved quickly to boost content investments, including a $7 billion UFC rights deal and a four-year exclusive agreement with “Stranger Things” creators the Duffer Brothers, even as Paramount Plus continues to struggle in a crowded streaming market.
Paramount is moving forward with plans to lay off thousands of employees following its $8 billion merger with Skydance Media, according to numerous reports on Friday.
The layoffs are expected to affect between 2,000 and 3,000 employees across Paramount’s divisions, though the final number could vary. The reductions are scheduled to begin by early November, coinciding with the company’s upcoming third quarter 2025 earnings report.
The New York Post was the first to report on the timing of the layoffs, and Variety was the first to affix a number to the anticipated job losses.
The job losses were not unexpected: Executives were more than candid about the possibility of layoffs in a post-merger environment, and reports indicated Paramount’s television networks were likely to be among those most-impacted.
The merger was stalled for several months while Paramount and Skydance awaited approval from the Federal Communications Commission (FCC) concerning the transfer of CBS-held broadcast licenses between the companies. The FCC gave its conditional approval last month, and the merger closed two weeks ago.
The merger handed Skydance Media CEO David Ellison control of Paramount’s flagship entertainment properties, including “Star Trek,” “South Park,” “SpongeBob SquarePants,” “Teenage Mutant Ninja Turtles” and “Top Gun,” as well as other properties like MTV Networks, Showtime, Paramount Plus and Pluto TV.
Ellison has signaled plans to increase investment in content, evidenced by a $7 billion, seven-year exclusive rights deal for UFC that was announced one week after Skydance took over. Paramount also recently signed the Duffer Brothers, creators of Netflix’s “Stranger Things,” to a four-year exclusive pact to produce films, series and streaming projects.
Despite these moves, Paramount faces the same challenges as other legacy media companies. Traditional cable and broadcast television, once the foundation of Paramount’s revenue, continues to decline as audiences migrate to streaming. Its flagship service, Paramount Plus, has struggled to gain the same traction as rivals.
Still, Paramount’s streaming properties are, financially, overcoming the problems of its cable TV networks, with Paramount Plus and Pluto TV helping the company earn $2.2 billion from its direct-to-consumer business last quarter.
As of December 2024, Paramount employed approximately 18,600 workers worldwide. Paramount has not offered a public comment on the matter.
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