Paramount Skydance is planning mass layoffs, beginning in the week of October 27, essentially cutting 2,000 US jobs as part of a $2 billion cost-cutting plan under new chief executive, David Ellison.
The layoffs came after the $8.4 billion merger between Skydance Media and Paramount Global, which closed in August.
According to a report by Variety, besides the US jobs, additional international jobs are also expected to be cut, with the company aiming to disclose exact details in its third-quarter earnings report on November 10.
Moreover, at an August 7 press conference in New York, just hours after the merger was closed, Jeff Shell, the ex-CEO of NBC Universal, who is now president of Paramount Skydance, told the press that the company would make cost cuts and layoffs as swiftly as possible.
Like other traditional media companies, Paramount, parent of CBS, MTV, Comedy Central, Nickelodeon and BET, has seen longer-term downturns in traditional advertising and distribution revenue as audiences shift toward streaming.
While Paramount Skydance gears up to slash jobs, it has signed new deals investing more heavily in content.
A week after Skydance took over, Paramount announced a $7.7 billion seven-year deal for exclusive UFC rights, a deal with Activision to make a movie based on "Call of Duty", and the acquisition of The Free Press for a reported $150 million.
