In a move that’s sending shockwaves through the entertainment industry, Paramount Skydance is preparing to lay off roughly 2,000 employees worldwide, with the first round of cuts set to begin the week of October 27, 2025. The decision, which follows the high-profile $8 billion merger between Skydance Media and Paramount Global this past August, is part of a sweeping effort by new CEO David Ellison to slash costs by an ambitious $2 billion, according to reports from Variety and Deadline.
The layoffs are not limited to the United States. International teams are also bracing for significant reductions, and further rounds of job cuts are expected to roll out through the end of the year. The restructuring, observers say, is the first major step in Ellison’s plan to streamline what has become a vast and complex media empire, one that now spans 32 countries and employs more than 19,000 people globally.
For many in the industry, the scale and speed of the layoffs are a stark reminder of the tough economic realities facing legacy media companies. The newly merged Paramount Skydance—combining the iconic Paramount brand with Skydance’s younger, tech-savvy profile—faces intensifying competition from streaming platforms, shifting audience habits, and rising production costs. Ellison, who took the reins after the merger was finalized on August 7, 2025, has been candid about the need for dramatic change.
“We have to make difficult decisions to ensure the long-term health and competitiveness of the company,” Ellison reportedly told senior staff in a recent internal memo, as cited by Variety. While the company has not released an official statement regarding the layoffs, the message from leadership has been clear: cost savings are essential if Paramount Skydance is to thrive in a rapidly changing media landscape.
According to company filings, Paramount alone employs about 18,600 people across 32 countries, while Skydance brings an additional 500 employees spread over two continents. The integration of these two workforces was always going to be a challenge, but few expected such deep cuts so soon after the merger’s completion. The layoffs, which will begin in late October, are expected to hit both creative and corporate teams, though precise details about which departments will be most affected have yet to be made public.
The impact on Canadian staff remains uncertain. As noted by employment law firm Samfiru Tumarkin LLP, the combined company currently lists more than 120 employees in Canada, according to LinkedIn data. However, it is still unclear whether any of these Canadian workers will be included in the upcoming rounds of layoffs. The firm has reached out to offer legal support and advice to any Paramount Skydance employees in Canada who may find themselves affected, emphasizing that non-unionized workers have rights and may be entitled to compensation if let go without proper cause or notice.
“If you’ve lost your job at Paramount Skydance for any reason, don’t panic,” the firm advised in a recent public statement. “We can review your situation, assess your legal options, and help you secure the compensation you’re legally entitled to.” They also stressed that their comments were intended as general information and not as an accusation of wrongdoing by any specific employer.
The timing of the layoffs has caught some industry watchers by surprise. Initial expectations had placed the first cuts in November, giving employees and managers a bit more time to prepare. Instead, the process has been accelerated, with the first notifications expected to go out as early as October 27. According to Deadline, this decision was made in an effort to quickly realize savings and reassure investors that Ellison’s leadership team is serious about meeting its financial targets.
For many at Paramount Skydance, the uncertainty is palpable. Employees are left wondering not only who will be affected but also how the company will continue to operate with a significantly reduced workforce. Some fear that the cuts could hamper the company’s ability to produce the kind of blockbuster films and hit television series that have defined the Paramount brand for generations.
Others, however, see the restructuring as a necessary—if painful—step toward securing the company’s future. The entertainment business has always been cyclical, and many of the industry’s biggest names have undergone similar transformations in the face of technological disruption and changing consumer tastes. Still, the sheer scale of the cuts at Paramount Skydance is unusual, especially so soon after a major merger.
Investors are watching closely. The merger between Skydance and Paramount Global was billed as a way to create a more agile, innovative company capable of competing with the likes of Netflix, Disney, and Amazon. But with so much riding on the success of the integration, Ellison’s ability to deliver on his $2 billion cost-cutting promise will be a crucial test of his leadership. As Variety noted, "The restructuring will be closely watched as the new leadership looks to streamline a sprawling media empire and steady the business amid tough industry economics."
In the broader context, Paramount Skydance’s move is emblematic of a larger trend in media and entertainment. As streaming giants continue to upend traditional business models, even the most storied studios are being forced to rethink how they operate. Consolidation, automation, and layoffs have become commonplace, and workers across the industry are feeling the strain.
For those affected by the layoffs, resources are available. Employment lawyers in Ontario, Alberta, and British Columbia have offered their services to help workers understand their rights and options. As Samfiru Tumarkin LLP put it, "Our experienced employment lawyers... have helped tens of thousands of non-unionized individuals resolve their workplace issues, including wrongful dismissals."
As the dust settles from the merger and the first wave of layoffs begins, the future of Paramount Skydance—and its thousands of employees—remains uncertain. What is clear, however, is that the entertainment industry is undergoing a period of profound change, and companies like Paramount Skydance will need to adapt quickly if they hope to survive and thrive in the years ahead.
With more layoffs expected in the coming months and the full impact of the restructuring yet to be seen, all eyes will be on Ellison and his team as they navigate one of the most challenging transitions in modern media history.
