CEO David Ellison’s Memo to Employees Released
Paramount Skydance is poised for significant workforce reductions as part of its strategic reorganization. The company plans to lay off approximately 1,000 employees, primarily in the United States. This move is aimed at enhancing performance and ensuring long-term success.
CEO David Ellison’s Memo to Employees Regarding Job Cuts
In a memo to employees, CEO David Ellison outlined the rationale behind these workforce reductions. He emphasized the need for transparency, stating, “We want to be as open and direct as possible about the reasons behind these changes.” The memo highlights two primary factors influencing the layoffs:
- Addressing redundancies within the organization.
- Phasing out roles misaligned with evolving business priorities.
Following the initial round of job cuts, the company anticipates a second wave, aimed at reducing the workforce by up to 2,000 positions both domestically and internationally. Overall, these reductions are expected to lower Paramount’s workforce by about 10%.
Rationale Behind the Layoffs
Ellison pointed out that significant changes were needed to build a strong company focused on future growth. He referred to previous communication indicating the necessity for restructuring as part of the transition to Paramount Skydance, which was formalized in August 2023. Reports indicate that Paramount had around 18,600 employees at the end of 2024, down from 24,500 two years earlier.
These layoffs are not a standalone action; they follow prior reductions, including a 3.5% cut to domestic staff in June before the completion of the Skydance deal on August 7. The company is also moving forward with high-stakes content deals, such as a $7.7 billion agreement with the UFC and a $150 million acquisition of Bari Weiss’ The Free Press.
Future Prospects and M&A Developments
Ellison, alongside financial partners, is exploring a potential merger with Warner Bros. Discovery. Despite WBD’s board rejecting Ellison’s initial offer, they are currently reviewing bids from various parties. The merger could lead to further job eliminations, intensifying the restructuring efforts at Paramount.
Ellison concluded the memo by acknowledging the impact of these decisions on employees, expressing gratitude for their contributions and assuring support throughout the transition. The company remains committed to positioning itself for future growth, maintaining confidence in a brighter outlook ahead.
