Major Paramount layoffs are beginning today, as CEO David Ellison seeks to reposition the company and shift financial resources toward what he and his executive team see as growth opportunities.
Ellison informed staff of the cuts early Wednesday morning in a memo, which was acquired by The Hollywood Reporter. About 1,000 jobs are expected to be impacted this week.
“We want to be as open and direct as possible about the reasons behind these changes,” Ellison wrote. “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.”
Ellison assumed control of Paramount in August, and has spent the last few months familiarizing himself with Paramount’s workings, and figuring out where resources need to be shifted around.
The executive is set to hold his first earnings call as CEO on Nov. 10, after taking over the company back in August. That call is poised to be a big one, with Ellison and his senior leadership team expected to give their financial outlook and strategy for the company.
At a press conference Aug. 7 the morning the Skydance-Paramount deal closed, president Jeff Shell told reporters that he expected to make the cuts as swiftly as possible, rather than drag them out.
“You can’t cut your way to growth in this business, you have to invest, so that’s we’re going to do, we’re going to get those efficiencies, but that is a way partially to fund the investments we’re going to make,” Shell said.
Ellison, for his part, reiterated that he plans to invest in the company, plans supported by the monster $7.7. billion deal for UFC rights, as well as deals for things like Bari Weiss’ The Free Press, film rights for the Call of Duty video game franchise, and a deal with the Duffer Brothers, among others.
“We actually have a plan that will exceed the $2 billion of run-rate synergies that we’ve announced, but we also will be investing significantly into our growth businesses, again, all with the goal of long term value,” Ellison said.
Read Ellison’s memo, below.
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 [HR email].
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
