Paramount Skydance Announces Layoffs of About 1,000 Staff, CEO Says Cuts Essential for Long-Term Success
Paramount Skydance announced today that it will reduce its workforce by roughly 1,000 positions, primarily in the United States. In an internal memo, chairman and CEO David Ellison described the move as a "necessary step" to streamline operations and safeguard the company’s long‑term viability amid a rapidly changing entertainment landscape.
The layoffs are part of a broader effort to make the studio more agile after a period of accelerated spending on content and technology. Over the past two years, the company has invested heavily in original streaming series, international co‑productions, and a suite of digital tools aimed at enhancing audience engagement. While those initiatives have generated new revenue streams, they have also heightened cost pressures at a time when advertising dollars remain volatile and competition from rivals such as Netflix, Disney+ and Amazon Prime continues to intensify.
According to the memo, the reductions will affect a range of functions, including certain marketing, post‑production, and administrative roles. The company said it will provide severance packages, outplacement services, and internal job‑re‑assignment opportunities where possible. Industry analysts noted that similar workforce adjustments have become common among major studios seeking to balance growth ambitions with fiscal discipline. "The move reflects a broader trend of consolidation and cost‑containment in the media sector," one unnamed analyst commented.
Employee groups have expressed concern about the timing and scale of the cuts, urging the company to prioritize transparency and support for affected staff. Local officials in key production hubs also highlighted the potential impact on regional economies, emphasizing the need for collaborative solutions to mitigate job losses.
Looking ahead, Paramount Skydance indicated that the restructuring will enable it to focus on high‑margin projects and accelerate its transition toward a more digitally integrated business model. The company plans to continue investing in flagship franchises and to explore new distribution partnerships, aiming to reinforce its position in a competitive market while maintaining financial stability.
