CBS Parent Company to Layoff Thousands

Just over two months after Skydance Media finalized its $8.4 billion merger with Paramount, the newly merged entity is delivering on promises to cut costs, starting with thousands of layoffs. Sources familiar with the plans indicate that the first wave of approximately 1,000 workers is scheduled for Wednesday, with an additional thousand-person reduction wave to follow shortly after.

The vast majority of the affected employees will be based in the U.S., though international divisions are also reportedly preparing for cutbacks in the coming weeks. These workforce reductions are central to the new ownership's commitment to Wall Street to achieve a staggering $2 billion in cost savings.

The cuts initiated by David Ellison's Skydance management team are even more dramatic when considering the prior management had already undertaken three significant waves of layoffs in late 2024, reducing the company's U.S. workforce by about 15%. This new, post-merger integration phase will prove a severe test of employee morale.

For Skydance CEO David Ellison, the workforce reduction is just one element of his aggressive strategy. The ink on the Paramount-Skydance merger was barely dry before Ellison offered (three times) to acquire rival Warner Bros. Discovery (WBD). While WBD has reportedly rebuffed those overtures, the company has since announced a review of its strategic alternatives, potentially setting up an auction with industry giants like Comcast and Amazon reportedly expressing interest.

The relentless financial pressures, stemming from secular declines in theatrical moviegoing and linear TV viewing and advertising, have affected most corporate divisions, especially the legacy cable networks. CBS Sports has been a relative exception, emerging largely unscathed from recent cutbacks.

The leadership landscape is also dramatically shifting under Skydance’s new ownership. Former Co-CEOs Brian Robbins and Chris McCarthy both departed as the merger officially closed last August.

These departures signal a challenging transition for the newly merged media giant as its new owner prioritizes financial restructuring over corporate stability and retention.