Paramount Skydance (PSKY) Announces 2,000 Job Cuts in $2 Billion Cost-Cutting Drive

Paramount Skydance (PSKY) will eliminate approximately 2,000 U.S. positions starting the week of October 27 as part of a sweeping $2 billion margin improvement initiative. The restructuring follows August's $8.4 billion merger between Skydance Media and Paramount Global, with full details expected during the November 10 earnings call.

The layoffs span multiple divisions, particularly targeting traditional television operations where declining ad revenues and cord-cutting continue to pressure profitability. This marks the second major workforce reduction for the legacy Paramount assets this year.

Despite the cuts, PSKY continues strategic investments including a $7.7 billion UFC broadcasting agreement and high-profile content deals. Management has engaged Bain & Company to identify additional efficiencies toward the $2 billion annual savings target.

Shares closed marginally lower at $16.77 as markets digested the competing signals of austerity measures and growth investments.