Home / Business and Economy / Paramount's Billion-Dollar Merger Sparks Sweeping Layoffs and Restructuring
Paramount's Billion-Dollar Merger Sparks Sweeping Layoffs and Restructuring
22 Oct
Summary
- Paramount merges with Skydance Media to expand into new verticals
- Paramount plans to cut $2 billion in costs, resulting in 2,000 U.S. layoffs
- Paramount reorganizes into three business units under new CEO David Ellison
In a major move to address its financial struggles, Paramount, the media conglomerate behind popular TV networks like Nickelodeon, Comedy Central, and CBS, has merged with Skydance Media in a billion-dollar deal. The merger, completed in August 2025, aims to help Paramount expand into new entertainment and media verticals, such as interactive gaming and sports-related content.
However, the merger has also triggered a significant restructuring at Paramount. Under the leadership of new CEO David Ellison, the company plans to reorganize into three distinct business units: Studios, Direct-to-Consumer, and TV Media. As part of this reorganization, Paramount is set to cut $2 billion in costs, resulting in the layoff of 2,000 U.S. employees, with additional job cuts expected overseas by the end of 2025.
Paramount President Jeff Shell has acknowledged that these layoffs will be "painful" for the company, but he emphasizes that Paramount does not want to be a company that constantly has to lay off employees. The goal is to make these necessary changes in one swift move, rather than having ongoing layoffs every quarter.
