Paramount-WBD layoffs are coming: What the merger means for employees

The Paramount-WBD merger has been finalized, and the merged company is being called Skydance. This merger is expected to significantly change media as we know it. One of the first things that will happen is the layoffs.

In the memo for Day 1 of the Paramount-WBD merged company, Skydance, co-CEOs David Ellison and Ynon Kreiz have detailed their plans going forward. The co-CEOs have admitted that the merger will lead to changes in the workforce and how they intend on handling it.

What the Paramount-WBD merger means for the employees

As Variety reports, right after the Paramount-WBD merger was finalized on October 6, 2026, a memo was sent to all employees of Skydance. In the memo, co-CEOs David Ellison and Ynon Kreiz told employees that the Paramount-WBD merger is the start of a new phase for the company. In their memo, they said that the goal is not just to create a bigger entertainment company but to build a stronger business that can grow in the changing media industry.

The memo also briefly addressed its rather bitter parts. As Variety reports, regarding layoffs, Ellison and Kreiz said in the memo:

“Integrating two companies will bring change, including difficult decisions that affect our workforce. We are committed to handling this process thoughtfully and respectfully.”

They also said:

“As we work toward these goals, we must never lose sight of what matters most: our people. We will build a culture where people feel respected, empowered, supported and proud of the work they do.”

Since both businesses have similar departments and operations, some roles will overlap. As a result, layoffs are to be expected as Skydance decides how the combined company should be organized.

Moreover, according to the memo, Paramount executives are aiming to reduce the company’s annual costs by more than $6 billion over the next three years. Layoffs are expected to be one of the ways the company reaches that target. However, Paramount has not yet revealed how many employees would potentially lose their jobs.

A report released by Los Angeles County in August estimated that the merger could affect around 4,500 film and television jobs in Los Angeles alone over a three-year period. However, this figure is an estimate and does not represent an official number of layoffs announced by Paramount/Skydance.

To sum up the rest of the 1,705-word memo, the co-CEOs highlighted that they want the Paramount-WBD merged company to be the best in storytelling, use technology more effectively, and compete more strongly in the global entertainment market. Moreover, the memo also mentioned that irrespective of the merger, the individual identities, IPs, logos, studios, franchises, and creative legacies of Paramount and Warner Bros. will be preserved.

Despite the difficult changes ahead, Ellison and Kreiz presented the merger as an opportunity rather than a defensive move. Layoffs always follow big mergers like the Paramount-WBD one. It is yet to be seen how many jobs are lost and how the transition is handled by the executives. Stay tuned for more updates.

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