Paramount Skydance Corp is set to begin a major round of layoffs with 1,000 job cuts on Wednesday, according to Bloomberg.
A second round will also be expected, with the total number of layoffs expected to reach 2,000 as previously reported.
The layoffs follow the merger of Paramount Global and Skydance Media in August, with new management making it clear that it wants to move quickly to cut costs and restructure the business.
The new owners have stated a goal to slash upwards of US$2 billion (A$3.05 billion) in costs.
The merger was reportedly worth $8.4 billion, with the incoming layoffs set to impact 5% of Paramount’s employees based on its workforce prior to the deal.
As of December 2024, Paramount had almost 18,600 full-time and part-time employees and 3,500 project-based staff.
New CEO David Ellison also made a bid for Warner Bros and also made a case for more industry mergers during the Bloomberg Screentime conference.
This is part of Ellison’s ambitions to compete with streaming giants like Netflix, Amazon and Apple.
Since taking over Paramount, Ellison has made many deals, including a $7 billion seven-year exclusive deal for the rights to UFC, luring over Stranger Things creators, the Duffer Brothers, from Netflix for a four-year exclusive pact to make content and acquiring right-leaning outlet The Free Press for $150 million.
