Paramount Skydance Lays Off 1,000 as Big Cuts Continue Under Ellison

Paramount Skydance has begun laying off about 1,000 employees and is only halfway through its planned job cuts. The company, led by CEO David Ellison, started the layoffs on Wednesday.

A source with knowledge of the situation stated that a total of 2,000 positions will be eliminated. This means about 1,000 more layoffs are expected, but the timing for the next round is not clear.

Ellison sent an internal memo to employees on Wednesday morning, informing them that cuts would occur. The memo did not state the exact number of layoffs. “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,” Ellison wrote.

The layoffs are part of a $2 billion cost-saving plan promised to investors after the Paramount-Skydance merger was completed in August.

Employees at Paramount told Business Insider they are anxious after enduring years of job cuts. A staff member in marketing described the layoffs as “awful and stressful” but said workers have “gotten used to it.”

The company also informed workers in September that starting in 2026, they must return to the office five days a week or accept a severance package.

Despite the layoffs, Ellison has made large investments in content. Backed by his billionaire father Larry Ellison, he has spent billions on projects including US UFC rights and a new movie based on the video game Call of Duty. He also spent $150 million to bring Bari Weiss to CBS News by acquiring her news website, The Free Press.

Ellison has attracted attention in Hollywood for his interest in Warner Bros. Discovery, the company behind HBO, which recently announced it may consider selling itself.

Below is the full memo David Ellison sent to Paramount employees:

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 AskHR@paramount.com.

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

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