Paramount set to begin laying off 1,000 workers in first round of cuts

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Paramount was predicted to lay off around 1,000 employees on Wednesday, marking the first step in a larger plan to reduce staff since David Ellison became CEO in August.

Sources say the company will be undergoing layoffs affecting many departments, including CBS, CBS News, Comedy Central, its cable channels, and the film studio on Melrose Avenue. These sources were not permitted to speak publicly about the matter.

Sources say Paramount is planning to cut another 1,000 jobs, which will bring the total job losses to around 10% of its entire workforce.

The layoffs were anticipated. Paramount’s new owners, Skydance Media and RedBird Capital Partners, had previously informed investors they intended to cut costs by over $2 billion, and this week’s job cuts are an initial move in that direction.

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Larry Ellison provided financial backing for the $8 billion acquisition of Paramount, and his willingness to invest would likely be crucial for any future deal involving Warner Bros. Discovery.

Paramount has been shedding staff for years.

Before the Ellison family acquired the company, over 800 employees—around 3.5% of the workforce—lost their jobs in June. Company leaders said this was due to fewer people subscribing to cable TV and a greater focus on building their streaming services. Then, in 2024, Paramount cut an additional 2,000 positions, representing 15% of its staff.

John Dickerson, a veteran journalist with CBS News, announced this week that he’s leaving the network in December. He’s been a regular on CBS for over 15 years, working on programs like “CBS This Morning” and “Face the Nation,” and most recently as co-anchor of “CBS Evening News” alongside Maurice DuBois. He took on that role earlier this year, replacing Norah O’Donnell, as part of a restructuring effort that also aimed to cut costs. However, the changes ultimately resulted in lower viewership.

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According to a report in The Wall Street Journal, Paramount, with backing from Larry Ellison, is planning a mostly cash offer to buy Warner Bros., the company behind CNN, HBO, and a famous film and television studio.

The Paramount layoffs are the latest sign of contraction across the entertainment and tech sectors.

Amazon announced this week that it’s laying off around 14,000 corporate employees as it increasingly uses artificial intelligence to handle more tasks. Similarly, Meta, the company that owns Facebook, revealed last week it’s cutting 600 jobs within its AI department.

As a big movie and TV fan, I was really surprised to hear that Spectrum – that’s Charter Corp., the cable and internet company – laid off 1,200 managers nationwide last week. It’s always a bit unsettling to see job losses, and I wonder how this will affect the content we all enjoy.

Los Angeles’s film and television industry has been significantly impacted by a decrease in local production and budget cuts from large media companies.

Around 112,000 people were working in film and television production in the Los Angeles area as of August. This number doesn’t include everyone working in entertainment, like freelancers and independent contractors.

Employment in the industry remained about the same as last year but fell 27% compared to 2022, when around 154,000 people were locally employed, according to the U.S. Bureau of Labor Statistics.

As a film and TV fan, it’s been tough watching the industry try to recover since the writers’ and actors’ strikes last year. Things really changed after that period we called ‘Peak TV’ – you know, when the studios were pumping out tons of shows to get their streaming services off the ground. After the strikes, studio spending dropped off quickly, and it feels like we haven’t really bounced back yet.

The recent strikes and their effects caused a significant decrease in activity,” explained Kevin Klowden, a director at the Milken Institute. “Now, the big question is whether these workers will leave the industry for good.”

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Once the deal is finalized on August 7th, Wall Street and the media industry will be focused on these key things.

California recently increased its tax credits for film and television, and local industry leaders predict this will lead to more productions and job opportunities.

Southern California’s traditional industries are facing new difficulties, such as changing customer preferences and competition from platforms like YouTube and TikTok.

Klowden explained that there’s growing worry about the financial stability of major Hollywood studios. The increased competition is a significant concern, and its impact is unclear.

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Morris O’Kelly believes traditional AM radio is fading away, especially after his talk show on KFI-AM (640) was canceled due to recent budget cuts.

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2025-10-29 13:01