Paramount Global Announces Severe Workforce Reduction Preceding Skydance Merger

In a substantial move that reflects the ongoing reshaping of the media landscape, Paramount Global is poised to reduce its United States workforce by an alarming 15% in the forthcoming weeks. This cut translates to an ejection of around 2,000 employees from the entertainment conglomerate's domestic operations. Naveen Chopra, Paramount CFO, announced during the company's Q2 earnings call that this maneuver is expected to present a huge restructuring expense estimated between $300 to $400 million in the third quarter.

The layoffs arrive on the heels of a massive $5.98 billion write-down Paramount took on the worth of its cable television networks — a strategic move that is part of the groundwork to its planned acquisition by Skydance Media. The deal is set to conclusively wrap up by September 30, 2025.

Leadership at Paramount, currently helmed by an interim 'Office of the CEO' trio consisting of Chris McCarthy, George Cheeks, and Brian Robbins, clarified that the imminent layoffs would target primarily marketing and communications departments. However, the "right-sizing" efforts are not confined to these domains, as other corporate functions, including legal and finance, are also slated to face cuts.

As of the close of 2023, Paramount Global commanded a global workforce of 21,900 individuals. Prior to this announcement, February saw the company reduce approximately 800 roles.

The projected layoffs are part and parcel of a broader cost-cutting initiative that the three co-CEOs had previously declared, aiming to economize $500 million annually in operational costs. This effort included efforts to eliminate overlapping job responsibilities, a necessary step exacerbated by the impending merger with Skydance, captained by Paramount’s controlling shareholder Shari Redstone along with the assent of its board.

Even more ambitious cost-saving measures are being strategized by the expected president of the merged entity, Jeff Shell. Working alongside the consulting unit Bain & Co., Skydance is aiming to identify at least $2 billion in cost synergies at Paramount annually. Chopra stressed that the $500 million in planned annual cost reductions under the co-CEOs' strategy fits within this larger $2 billion framework. Shell, during a press briefing, indicated a future for Paramount that de-emphasizes linear television, recognizing the sector's decline and the need to manage these businesses differently in their waning days.

This development signals a critical juncture for Paramount Global as it steers towards a new horizon under Skydance Media’s canopy, a decision inevitably underscored by the harsh realities of an evolving media industry.