Paramount Skydance, the newly merged media powerhouse led by CEO David Ellison, is preparing to make sweeping changes that will reshape the company and reverberate throughout the entertainment industry. Starting the week of October 27, 2025, the company will begin eliminating approximately 2,000 jobs in the United States as part of a dramatic $2 billion cost-cutting initiative. According to Variety, these layoffs are part of a broader global restructuring effort in the wake of the $8.4 billion merger between Skydance Media and Paramount Global, finalized in August of this year.
The job cuts, which will affect about 10-15% of Paramount’s workforce, have sent shockwaves through the company’s 18,600 full- and part-time employees worldwide, not to mention its 3,500 project-based staff. The layoffs are expected to extend beyond the U.S., with additional redundancies anticipated in international markets. However, according to Mumbrella, local staff in Australia may be spared in this particular round, though uncertainty remains for many employees across the globe.
This isn’t the first time in 2025 that Paramount has reduced its headcount. Earlier in June, ahead of the much-anticipated merger, the company cut 3.5% of its U.S. staff, a move that foreshadowed the deeper cuts now looming on the horizon. The latest round of layoffs will be detailed in Paramount Skydance’s third-quarter earnings report, scheduled for release on November 10, 2025, as confirmed by both Variety and Reuters.
David Ellison, the billionaire heir to the Oracle fortune and now at the helm of Paramount Skydance, has framed these cuts as both necessary and strategic. At a press conference in August, Ellison explained that the $2 billion in U.S. cost reductions would be reinvested into the business “with the goal of long term value.” He emphasized that the immediate focus would be on acquisitions and strengthening the company’s position in the intensely competitive media landscape.
Jeff Shell, former NBC Universal CEO and now president of Paramount Skydance, echoed Ellison’s sentiments at the same event. Shell told reporters, “You can’t cut your way to growth in this business, you have to invest, so that’s what we’re going to do, we’re going to get those efficiencies, but that is a way partially to fund the investments we’re going to make.” Shell’s comments suggest a dual-track approach: aggressive cost-cutting alongside bold investments in content and strategic deals.
Indeed, the company’s recent moves indicate a willingness to spend big where it counts. Since the merger, Paramount Skydance has inked a series of headline-grabbing deals. The company secured a $7.7 billion, seven-year broadcast partnership with the UFC, underscoring its commitment to live sports—a sector that remains a lynchpin for media conglomerates seeking to retain subscribers and advertisers. Additionally, Paramount shelled out $150 million for Bari Weiss’ The Free Press, and locked down exclusive streaming rights to South Park for five years at a cost of $1.5 billion. Not stopping there, the company recently signed the creators of Stranger Things, The Duffer Brothers, to a four-year exclusive production deal, further bolstering its original content pipeline.
Perhaps the boldest move of all was Ellison’s $60 billion bid for Warner Bros. Discovery, a transaction that, if successful, would have further cemented Paramount Skydance’s dominance in the global entertainment industry. Although Warner Bros. Discovery reportedly rejected the offer, Ellison remains on the lookout for new acquisition opportunities, signaling that the company’s appetite for expansion is far from sated.
Yet, even as Paramount Skydance invests heavily in its future, the specter of job losses hangs over its current workforce. The cuts are described by Variety as “a broad across-the-board culling,” raising questions about which divisions will be most affected. While the company’s recent $1.1 billion per year UFC broadcast rights deal would seem to highlight the value placed on its sports division, including CBS Sports, it’s difficult to imagine any area remaining completely untouched when the reductions are this extensive. As Deadline pointed out, the scale of the layoffs suggests that even high-profile units could see significant changes.
For employees, the uncertainty is palpable. Paramount Skydance has not issued public comment beyond what has been shared at press events, leaving many to await further details in the upcoming earnings report. The company’s silence has only fueled speculation about the fate of various departments and the overall direction of the merged entity.
The context for these dramatic changes is a media industry in flux. Traditional revenue streams are under pressure as audiences continue to migrate from linear television to streaming platforms. At the same time, competition for premium content and live sports rights has driven up costs, forcing even the largest players to rethink their strategies. Paramount Skydance’s approach—slashing jobs to fund new investments—reflects a broader trend among media giants grappling with the demands of the digital age.
Industry analysts are watching closely to see whether Ellison’s gamble pays off. The idea is straightforward: streamline operations, cut costs, and reinvest in high-growth areas like live sports, streaming, and original content. But as Jeff Shell cautioned, “You can’t cut your way to growth.” The challenge will be to strike the right balance between efficiency and innovation in a business where both are essential for survival.
For now, all eyes are on the week of October 27, when the first wave of layoffs will begin. Employees, investors, and industry observers alike will be looking for clarity in the company’s November 10 earnings report, hoping for a roadmap that explains not just where the cuts will fall, but how Paramount Skydance plans to turn short-term pain into long-term gain.
As the dust settles, the fate of thousands of workers—and the future direction of one of the world’s most storied media brands—hangs in the balance. Paramount Skydance’s next moves will be watched with keen interest, both for what they reveal about the company’s ambitions and what they portend for an industry in the midst of a profound transformation.
