Paramount Skydance (PSKY) will begin mass layoffs the week of October 27, cutting about 2,000 U.S. jobs as part of a $2 billion cost-cutting plan. The move follows the $8.4 billion merger between Skydance Media and Paramount Global, which closed in August. According to reports from Variety and Reuters, the company aims to release full details during its third-quarter earnings report on November 10.
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Meanwhile, PSKY shares dropped slightly, closing at $16.77.
Streamlining after the Merger
According to the reports, the layoffs will affect multiple divisions across the company. The plan focuses on trimming costs in the traditional television business, where advertising and cable revenue have continued to fall. Before the merger, Paramount Global had already cut a large part of its domestic staff earlier this year.
At the same time, Paramount Skydance is still investing in high-profile projects. It recently signed a $7.7 billion broadcast deal with the UFC and secured new contracts with major creators, including the Duffer Brothers. The company is also reviewing operations with help from Bain & Company to reach its target of $2 billion in annual savings.
Aiming for Long-Term Stability
David Ellison, who became CEO after the merger, has begun reshaping the company’s structure to focus on film and streaming growth. Jeff Shell, the former NBCUniversal chief now serving as President, is working alongside Ellison to simplify operations and improve performance.
Despite the job cuts, Paramount Skydance continues to explore expansion moves. Reports suggest the company may be evaluating a potential bid for Warner Bros. Discovery (WBD).
The layoffs mark one of the largest media workforce reductions this year, reflecting the industry’s shift away from traditional broadcasting toward digital platforms. Paramount Skydance has not yet provided public comment on the report.
Is PSKY Stock a Buy?
On the Street, Paramount-Skydance continues to divide opinions with a Hold consensus rating. Out of 18 analysts, only two consider it a Buy, while six see it as a Sell. The average PSKY stock price target is $12.69, suggesting a 24.33% downside from the current price.
