Paramount initiated a major round of layoffs Wednesday morning, cutting roughly 1,000 U.S.-based employees in the first wave, with another 1,000 expected to follow soon. The total of 2,000 job cuts represents about 10% of the company’s global workforce.

CEO David Ellison confirmed the layoffs in a memo to staff, acknowledging that the restructuring marks a significant step in reshaping the company’s future.

Read Ellison’s full memo:

Dear All,

When we launched the new Paramount in August, we made clear that building a strong, future-focused company would require significant change – including restructuring the organization. As part of that process, we must also reduce the size of our workforce, and we recognize these actions affect our most important asset: our people.

We want to be as open and direct as possible about the reasons behind these changes. In some areas, we are addressing redundancies that have emerged across the organization. In others, we are phasing out roles that are no longer aligned with our evolving priorities and the new structure designed to strengthen our focus on growth. Ultimately, these steps are necessary to position Paramount for long-term success.

That said, today we begin the difficult process of informing impacted team members across the company. These decisions are never made lightly, especially given their effect on our colleagues who have made meaningful contributions to the company. To this end, we are committed to supporting all employees through this transition. Members of our HR team will be working closely with business unit leaders to share detailed information on benefits and transition services. Additional questions can be directed to [HR email].

We are deeply grateful for your hard work, professionalism, and resilience during this period of transition. We remain confident that Paramount’s best days are ahead, and we’re committed to building a strong foundation for the future.

Thank you,
David

The layoffs, long anticipated by industry observers, come nearly three months after Paramount completed its $8.4 billion merger with Skydance. The merged company has pledged to deliver $2 billion in cost savings, part of which will come from workforce reductions. Additional measures include selling off non-core assets and reducing real estate holdings.

Just last week, Paramount sold its Argentinian broadcast network Telefé for about $100 million—a steep decline from the $345 million that Viacom paid for the property in 2016.

Despite the belt-tightening, Paramount has continued to make bold business moves. It recently secured exclusive UFC rights in a $7.7 billion deal and renewed its partnership with ‘South Park’ creators Trey Parker and Matt Stone for $1.5 billion. The latter agreement was finalized shortly before the merger’s completion with approval from Ellison’s team.

Before the merger, Paramount had already undergone several rounds of downsizing. Throughout late 2024, the company executed three separate waves of layoffs that reduced its U.S. workforce by approximately 15%. By year’s end, Paramount’s global headcount stood at 18,600, before Skydance’s 1,300 employees were added through the merger.

While layoffs are a common challenge in post-merger integration, they come at a sensitive time for Paramount’s leadership. Even as Ellison steers the company through restructuring, he has also been exploring new merger and acquisition opportunities. Shortly after closing the Skydance deal, Ellison made multiple offers to acquire Warner Bros. Discovery (WBD). Those offers were reportedly declined, but Ellison is expected to continue pursuing a deal.

Paramount’s layoffs mirror a broader wave of corporate downsizing across major U.S. companies. This week alone, Amazon and United Parcel Service announced plans to eliminate tens of thousands of jobs, joining others such as General Motors in turning to artificial intelligence as a cost-effective alternative to traditional white-collar labor.

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