Paramount Faces Major Layoffs as Skydance Merger Nears Completion

Paramount Global is expected to undergo substantial layoffs after the Federal Communications Commission approved its merger with Skydance Media, clearing the way for Skydance to assume control in the coming weeks. The deal follows a prolonged period of uncertainty and multiple rounds of job cuts at Paramount, which owns CBS, Paramount Pictures, and several major cable networks.

To secure regulatory approval, Skydance agreed to eliminate diversity, equity, and inclusion (DEI) programs at Paramount and to appoint an ombudsman at CBS to address complaints about bias in news and entertainment programming. FCC Commissioner Anna Gomez criticized these measures, stating they represented "never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law."

Jeff Shell, who is set to become president of the merged company, told investors that Skydance and consulting firm Bain & Co. had identified at least $2 billion in potential annualized cost savings, much of which would come from the linear TV business. Shell noted, "We know that linear is challenged and declining... we got to run these businesses in a different way as they decline."

Paramount's leadership previously announced $500 million in annual cost reductions, largely achieved through layoffs that reduced the U.S. workforce by about 15% last year. Additional cuts affected several hundred employees last month. As of the end of 2024, Paramount reported around 18,600 employees worldwide, down from 24,500 two years prior. Skydance currently employs over 500 people.

Further layoffs are anticipated, with sources suggesting the total could reach into the thousands. Leadership changes are also expected, with Chris McCarthy and Brian Robbins set to depart, while George Cheeks is likely to remain as CBS CEO. Upon closing, Skydance and its partners will inject $1.5 billion into Paramount, primarily to reduce the company's $14.16 billion in long-term debt. Analyst Robert Fishman commented, "With that, the real work begins — rebuilding Paramount, addressing the critical strategic questions ahead, and charting a path toward a more sustainable and competitive future."