Paramount to Slash Thousands of Jobs After Skydance Takeover

Paramount, the American media conglomerate that owns Channel 5 and storied Hollywood studios, is set to cut over 2,000 jobs in a sweeping round of redundancies following its recent acquisition by Skydance Media. The move comes just weeks after the Ellison family, led by David Ellison, who is son of Oracle founder Larry Ellison, completed the multi-billion-pound deal to purchase Paramount in August.

The redundancies represent a significant 10 percent reduction in Paramount’s global workforce, with approximately 1,000 jobs to be lost in the United States as an immediate step. International layoffs are scheduled to follow, though the precise impact on UK operations remains unconfirmed.

David Ellison communicated to staff in a memo that these measures are intended to position the media giant for “long-term success”. According to Ellison, certain roles have become superfluous due to organisational overlap, while others no longer align with the company’s evolving strategic priorities and its new growth-focused structure.

The cost-cutting agenda aims to reduce expenses by a considerable $2 billion (approximately £1.5 billion), establishing a “leaner, faster, smarter and more agile company”. Media giants globally have been forced to grapple with shifting consumer habits, particularly the decline of traditional cable television and the relentless surge of streaming services. Paramount itself has seen successive rounds of job cuts in recent years.

Skydance has moved quickly to reshape the legacy studio since assuming control. Major deals include a $7.7 billion agreement securing exclusive rights to air the Ultimate Fighting Championship over the next seven years, and the acquisition of news start-up The Free Press, now led by Bari Weiss as CBS News’ editor-in-chief. These bold investments signal a clear intent to reposition Paramount at the forefront of the media and entertainment industry.

Ambitions within the Ellison empire show no signs of slowing, with Skydance now weighing a bid for Warner Bros Discovery, owner of Hogwarts’ film studios, HBO, and CNN, among others. David Zaslav, chief executive of Warner Bros Discovery, has indicated the company is open to offers, indicating a possible new wave of consolidation in the sector. Rival interests reportedly include Netflix and Comcast, setting the stage for a fiercely contested acquisition battle.

Given Skydance’s rapid transformation of Paramount, analysts anticipate additional changes and possible further job losses as the US media landscape continues its seismic shift.