--- title: "Paramount to Lay Off 15% of U.S. Workforce Ahead…" canonical: "https://www.metaintro.com/blog/paramount-layoffs-us-workforce-skydance-merger" language: "en" author: "laceykaelani" published: "2024-08-15T12:00:00.000Z" modified: "2024-08-15T20:44:03.909Z" --- [Back to Blog](/blog) [Layoffs](/blog/tag/layoffs) # Paramount to Lay Off 15% of U.S. Workforce Ahead of Skydance Merger Paramount Global plans to lay off 15% of its U.S. workforce, affecting 2,000 employees, ahead of its merger with Skydance Media. [![Lacey Kaelani](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/2934b90b-ca20-4439-bc56-71b4f5733545_1766029465094.png)Lacey Kaelani @laceykaelani](/blog/author/laceykaelani) [August 15, 2024](/blog/archive/2024/08)5 min read ![Toggling notification preferences in settings](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/help/v20260303/toggling-notification-preferences.gif) [https://x.com/intent/tweet?text=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger](https://x.com/intent/tweet?text=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger&title=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger&title=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger)[mailto:?subject=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger](mailto:?subject=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger) [Paramount Global](https://www.paramount.com) is set to cut 15% of its U.S. workforce in the coming weeks, a move that will affect approximately 2,000 employees. The layoffs are part of a larger effort to streamline operations and reduce costs as the company [prepares for its planned merger with Skydance Media](https://deadline.com/2024/07/david-ellison-skydance-paramount-takeover-1236002996/). The announcement was made during [Paramount’s Q2 earnings call](https://ir.paramount.com/events/event-details/q2-2024-paramount-earnings-conference-call), where the company also reported a significant operating loss tied to a $5.98 billion write-down on the value of its cable TV networks. This devaluation is connected to the ongoing challenges in the linear TV market and the upcoming acquisition by [Skydance Media](https://skydance.com/), which is expected to close by September 2025. **Restructuring and Cost-Cutting Measures** [Paramount's Chief Financial Officer, Naveen Chopra](https://ir.paramount.com/news-releases/news-release-details/paramount-globals-chief-financial-officer-naveen-chopra-2), revealed that the company expects to record a restructuring charge of $300 million to $400 million in the third quarter of this year as part of the layoffs. The cuts are primarily aimed at marketing and communications departments, with additional reductions in legal, finance, and other corporate functions. [Chris McCarthy](https://www.linkedin.com/in/chris-mccarthy-482a9583), who heads Showtime/MTV Entertainment Studios and Paramount Media Networks, stated on the earnings call that the layoffs would be completed by the end of 2024. McCarthy, along with fellow co-CEOs George Cheeks and Brian Robbins, had previously outlined plans to reduce annualized costs by $500 million, which includes the upcoming job cuts. The layoffs are the latest in a series of cost-cutting measures implemented by Paramount as it navigates a difficult media landscape. Earlier this year, the company eliminated 800 positions, and last year, significant cuts were made across its domestic cable networks, including the closure of the [MTV News division](https://www.cnn.com/2023/05/09/media/mtv-news/index.html). **Financial Pressures and Market Response** Paramount's financial difficulties have been exacerbated by the declining performance of its linear TV business and the high costs associated with its streaming services. The company’s stock has been under pressure, with shares down 28% so far this year. Investors have been wary of Paramount's debt levels and its exposure to the challenges facing traditional television networks. The Skydance merger, which has been in the works for some time, is seen as a crucial step in repositioning Paramount for the future. [Skydance, led by CEO David Ellison](https://skydance.com/exec/) and backed by RedBird Capital and Oracle co-founder Larry Ellison, has been aggressive in its approach to cost-cutting and restructuring. Jeff Shell, former CEO of NBCUniversal and now poised to become president of the combined company, has emphasized the need to achieve at least $2 billion in annualized cost synergies as part of the merger. During the earnings call, Chopra reiterated that the $500 million in cost reductions identified by the co-CEOs is part of the broader $2 billion target set by Skydance. These savings are expected to come primarily from Paramount's linear TV business, which has been hit hard by shifts in consumer behavior and advertising revenues. **Employee Impact and Industry Reactions** The announcement of the layoffs has caused significant unease among Paramount employees, many of whom have been bracing for the cuts in recent weeks. Morale within the company has reportedly been low, with workers anxious about their job security as the company moves forward with its restructuring plans. Marketing and [Paramount+](https://www.paramountplus.com/) are expected to be among the hardest-hit areas, with sources indicating that up to half of the company's marketing team could be affected. The layoffs are part of a broader effort to reduce spending on streaming services as media companies, including Paramount, focus on making their platforms profitable. In addition to marketing, other corporate functions such as legal, finance, and shared services are also expected to see significant reductions. Each department head has been given a target number of positions to eliminate, with some departments facing double-digit percentage cuts. **Future Outlook** As Paramount prepares for its merger with Skydance, the company is undergoing a significant transformation aimed at positioning itself for long-term success. While the layoffs are a painful but necessary step, they are part of a broader strategy to create a leaner, more efficient organization. Paramount’s leadership, now operating under the "Office of the CEO" structure, has been given the latitude to make strategic decisions in the lead-up to the merger. This includes identifying additional cost-saving measures and streamlining operations across the company. Despite the challenges, Paramount's management remains focused on building a more agile company that can compete in an increasingly digital and fragmented media landscape. The success of the Skydance merger and the effectiveness of the cost-cutting measures will be crucial in determining the company's future trajectory. ### Share this article [https://x.com/intent/tweet?text=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger](https://x.com/intent/tweet?text=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger&title=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger&title=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger)[mailto:?subject=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger](mailto:?subject=Paramount%20to%20Lay%20Off%2015%25%20of%20U.S.%20Workforce%20Ahead%20of%20Skydance%20Merger&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fparamount-layoffs-us-workforce-skydance-merger) ![](https://cdn.metaintro.com/rs:fill:1200:800/q:30/plain/images/bridges/bridge-expand.1df895c6bd76d96f.png) For job seekers ## Ready to find a role that actually fits? 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