Paramount Lays Off Hundreds Amid Industry Downturn and Skydance Merger Push

Paramount Global is laying off 3.5% of its U.S.-based workforce—several hundred employees—as it continues to grapple with economic challenges and the steady decline of traditional pay-TV services. The move is part of the company’s strategy to adapt to ongoing shifts in the media industry and respond to broader macroeconomic pressures. Employees were officially informed of the layoffs through a memo sent Tuesday morning from the office of the CEOs.

Executive Strategy Includes Layoffs and Merger Plans to Reshape Paramount’s Global Operations

The memo was jointly signed by Paramount’s top executives—George Cheeks, Chris McCarthy, and Brian Robbins—who noted that most of the affected employees would be notified that same day. These layoffs are part of a broader strategic plan introduced by the CEOs last June, which outlined workforce reductions and cost-cutting measures aimed at strengthening the company’s long-term position.

This round of layoffs coincides with Paramount’s pursuit of regulatory approval for its proposed merger with Skydance Media, a deal that may further reshape the company’s operations. The leadership memo acknowledged that while this phase primarily affects U.S.-based employees, future workforce adjustments could extend internationally. The exact scope and timeline of any potential global impact were not detailed.

Media Industry Faces Ongoing Job Cuts as Companies Adjust to Shifting Business Realities

Paramount’s decision follows a wider trend of job reductions across the media sector. Major competitors like Disney and Warner Bros. Discovery have also announced significant headcount reductions in recent weeks, signaling a broad industry shift as companies adapt to new consumer habits, declining cable subscriptions, and tightening financial conditions.

As of December, before the latest layoffs, Paramount Global employed about 18,600 full- and part-time staff worldwide, according to regulatory filings. The company had already initiated a larger workforce reduction plan in August, targeting a 15% cut in its U.S. workforce. Despite the challenges, Paramount’s leadership expressed gratitude to all employees and emphasized that these difficult changes are essential for ensuring the company’s stability and future growth.