Paramount Prepares Major Layoffs in “One Painful Move,” Jeff Shell Confirms – They Could Even “Exceed” the $2 Billion Target

Paramount is preparing to make big layoffs, and the company says it will be tough but quick. The news came during a press meeting in Los Angeles with Paramount president Jeff Shell and CEO David Ellison, according to a report by industry sources.

Shell said the cuts will come in one big round, not little by little. “We do not want to be a company that has layoffs every quarter,” he explained. “So, it’s going to be painful. It’s always hard, but we don’t want to be a company that every quarter is laying people off.”

He added that the goal is to get it done in one move and then move forward. “So, it is important for us to get done what we’re doing in one big thing and then be done with it,” Shell said. He spoke alongside Ellison, Paramount+ leader Cindy Holland, TV Media chief George Cheeks, film heads Dana Goldberg and Josh Greenstein, COO Andy Gordon, and board member Gerry Cardinale.

The leadership team made it clear they don’t believe in slowly cutting a company to try and grow it. Ellison and Shell have both mentioned this approach, including in a media session on August 7 in New York City.

David Ellison also said the layoffs could be larger than initially expected. “We believe the upcoming layoffs and restructuring could exceed the $2 billion target,” he said. But he kept details about timing private, asking for patience. “In terms of specifics and timelines, we’re in day 7, and I hope you can respect when we get there, we’re going to talk to team members first before talking to anybody else,” Ellison added.

The company recently spent over $9 billion on projects like UFC and South Park, so deep cuts are now seen as necessary. Ellison told staff at a town hall with about 18,000 employees from Paramount and Skydance that the leadership team will be honest and direct as decisions are made.

“We want to be straightforward and honest over the cuts and changes as they are determined,” he said, offering some reassurance to employees.

With a new leadership team in place after Ellison’s $8.4 billion acquisition of Paramount from Shari Redstone, the company seems set to make these layoffs one significant move rather than small, repeated cuts.

Have something to add? Let us know in the comments!