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Netflix Warns of 'Astronomical' Job Cuts in Rival Deal
10 Feb
Summary
- Netflix executive warns a rival media deal could result in massive job losses.
- The executive contrasted Netflix's job growth with competitor's past job cuts.
- Netflix's own synergy savings are reportedly from licensing fees, not layoffs.
Netflix's chief global affairs officer, Clete Williams, has voiced strong opposition to a potential deal between Paramount Skydance and Warner Bros. Discovery (WBD), warning of "astronomical" job losses. Williams stated that Paramount's bid, which touts $6 billion in synergies, is a "code for $6 billion in job cuts." This comes as Netflix's own acquisition of WBD's streaming and studios business, including HBO, is currently under regulatory review.
Williams highlighted a significant difference in approach, noting that Netflix is "tripling jobs" while Paramount has recently implemented 3,500 layoffs. He asserted that Netflix's projected $2-$3 billion in synergies are derived from licensing fees and similar cost-saving measures, explicitly avoiding job reductions. Williams suggested that the Paramount deal could become the largest leveraged buyout in history, necessitating extensive "cut, cut, cut" measures.
Netflix's significant $83 billion all-cash deal for Warner Bros. was announced in December and is now awaiting regulatory approval both domestically and internationally. The Department of Justice is reviewing Netflix's transaction, and similar inquiries have been made regarding Paramount's potential bid. Williams indicated that Netflix is actively engaging with state attorney generals as part of this process.
