Paramount began a sweeping round of layoffs Wednesday, according to a memo from CEO David Ellison, just months after the Trump administration greenlit its controversial $8 billion merger with Skydance, an entertainment group looking to shake up the entire media ecosystem.
The layoffs will initially impact more than 1,000 employees, according to a source familiar with the company who spoke on the condition of anonymity.
About 1,000 more employees are expected to be laid off in the near future, making the total cuts amount to 10% of the roughly 20,000 employees at Paramount Skydance, a second source familiar with the company who spoke on the condition of anonymity said.
In the memo, Ellison wrote that the company is "phasing out roles that are no longer aligned with our evolving priorities and the new structure designed to strengthen our focus on growth."
Paramount, now officially known as Paramount Skydance, owns CBS and its news division’s longtime trophy property, “60 Minutes,” as well as BET, MTV and Nickelodeon, plus Paramount’s film properties such as the “The Smurfs” and “Sonic the Hedgehog” franchises.
Investors have thus far been pleased with Paramount’s performance since its shares were reorganized in August, sending its stock price up more than 50%. The company is worth about $18 billion.
The Paramount layoffs announcement comes amid Ellison’s aggressive pursuit of Warner Bros. Discovery.
In September, NBC News confirmed reports that Paramount was preparing a bid for the parent company of CNN, a move that confirmed speculation that Ellison may be interested in creating a news and entertainment juggernaut that would reshape the U.S. media and political landscape. Warner Bros. ultimately rejected that bid, but announced earlier this month that it was officially putting itself up for sale.
Trump administration regulators would also have to approve any deal for Warner Bros. But Ellison, the son of Oracle co-founder and close Donald Trump ally Larry Ellison, has already proven adept at currying favor with the president by extinguishing what critics have called Paramount’s liberal bent.
He appointed Bari Weiss, an outspoken critic of progressivism, as the new editor-in-chief of CBS News. Shortly after Skydance officially took over Paramount, the company announced it would be ending the tenure of Stephen Colbert, long seen as a liberal commentator, as host of “The Late Show.” In the run-up to the Paramount approval, Skydance signaled the newly formed company would commit to focusing on “American storytelling” while touting a new, “unbiased” editorial direction for CBS News.
In July, Paramount announced it had settled a lawsuit brought by Trump that had accused CBS News’ “60 Minutes” of airing an edited clip of an interview with then-Vice President Kamala Harris that Trump said unduly affected the 2024 election.
Paramount’s third-quarter earnings call will take place on Nov. 10.
