Paramount Moves Up Job Cuts to October Amid Cost-Saving Drive
Paramount has accelerated its plans for job cuts, now set to commence during the week of October 27, 2023. The entertainment conglomerate will make the announcement during its earnings call for the third quarter, scheduled for November 10. Initially, the company anticipated layoffs to begin in early November, affecting an estimated 2,500 to 3,000 positions globally.
Sources indicate that within the United States, the number of impacted employees could reach approximately 2,000, while the total for international staff is still being calculated. This round of layoffs is just the beginning, with further reductions expected to continue throughout the year.
Cost-Cutting Measures Post-Merger
These job cuts come as part of a broader strategy to achieve around $2 billion in cost savings following the merger with Skydance, which was finalized on August 7, 2023. The cuts will impact various divisions, including theatrical, streaming, and linear operations. Key executives have already departed from the company, indicating a significant restructuring effort.
Paramount currently employs approximately 18,000 people worldwide, while Skydance has a workforce of under 2,000. The company has expressed a commitment to avoid making layoffs a regular occurrence. At a press conference in August, Paramount President Jeff Shell stated, “We do not want to be a company that has layoffs every quarter. It’s going to be painful. It’s always hard, but we don’t want to be a company that every quarter is laying people off.”
Future Workplace Changes and Strategic Plans
In a message to employees earlier this month, David Ellison, who leads Paramount, informed staff that they would be expected to work in the office five days a week starting January 5, 2026. Employees who prefer not to return to the office can consider a voluntary buyout option.
As the company navigates these changes, it is also reportedly preparing a substantial bid of $60 billion to acquire Warner Bros Discovery. This move signifies Paramount’s ambition to expand its influence in the entertainment industry, even as it simultaneously undertakes significant workforce reductions.
Paramount has not publicly commented on the specifics regarding the forthcoming layoffs. As the company progresses through this challenging phase, the impact on its workforce and the broader industry remains to be seen.
