David Ellison at Paramount's media event

Source: Paramount Pictures

David Ellison at a recent Paramount media event

Paramount under the David Ellison leadership has begun layoffs with approximately 1,000 staffers mostly in the United States being let go today (October 29).

It is understood a further 1,000 employees will be made redundant soon, reducing the workforce by approximately 10%. The affected divisions are understood to be film, television, streaming, and corporate.

Company executives are looking to make $2bn in savings. Last week Paramount announced it sold the Argentinian broadcaster Telefé in a deal valued at $100m, according to reports.

In a memo to staff on Wednesday, CEO Ellison said: “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.”

Ellison and his team have been actively ramping up the company’s assets and relationships since the $8.4bn merger with Paramount Global closed in the summer, signing talent to first-look deals, closing a $7.7bn UFC partnership, and acquiring The Free Press in a deal reportedly worth $150m.

The CEO added: “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.”

Ellison’s memo is 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 [human resources].

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

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