Paramount is initiating a major round of job cuts following its recent merger with Skydance. In a communication to employees, CEO David Ellison confirmed the process had begun with roughly 1,000 staffers impacted initially, and another 1,000 expected to follow. In total, the reduction could affect about 10 percent of the company’s workforce.

The layoffs span multiple divisions including production, marketing, distribution, music and television, with a noticeable impact at parts of the motion-picture unit. Insider sources say executives in film marketing and global distribution are among those affected. The cuts reflect an ongoing effort to streamline operations and align with shifting strategic priorities under the newly merged entity.

In his memo, Ellison stated the decisions were “never made lightly,” emphasizing the need to shape a “strong foundation for the future.” Industry watchers note the timing is tied to the merger’s goal of realizing more than $2 billion in cost savings. The job reductions come just two months after the merger closed in August 2025.

Beyond internal roles, the impact extends to external operations. For example, the Johannesburg bureau of CBS News is set to close, and streaming shows such as “CBS Morning Plus” and “CBS Evening News Plus” have been canceled. Staff inside news and production units described the layoffs as broad and sudden, with some referring to them as a “bloodbath.”

The timing coincides with larger industry shifts. Studios are increasingly focusing on streaming content profitability, franchise-driven films and cost discipline in production and marketing. Paramount’s newly combined operations are emphasizing marquee film releases, global streaming reach and transforming legacy media divisions to fit a more agile model. With major deals already in motion and bids for further acquisitions in play, the company appears intent on funneling resources into its highest-growth areas while reducing support functions.

For affected employees, the cuts come as a shock. Affected workers will receive notifications this week with severance and benefits details expected. The broader company messaging frames the reduction as part of the execution phase following the merger, rather than an ongoing cycle of cuts. However, given the scale and speed, the move signals a notable shift in Paramount’s organization and priorities.