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Paramount Skydance has announced a significant expansion of its cost‑reduction strategy. In its first quarterly report since Skydance Media and Paramount Global completed their August 2025 merger, the company said it now aims to achieve at least $3 billion in savings, up from the $2 billion target previously announced.
The increased goal reflects chief executive David Ellison’s drive to consolidate studio operations, simplify distribution and create a leaner organisation able to compete in a fast‑changing media landscape.
Ellison, who took over after the $8.4 billion merger, has pursued aggressive moves to reposition the studio. He wrote to investors that the group needs to “adapt and lead” as the media industry undergoes generational change.
Plans include unifying the technology stack for Paramount+, Pluto TV and BET+ and reinstating a global distribution network that can support new content development. The company also intends to reorganise into two divisions to align operations with the new structure.
Paramount Skydance reported third‑quarter revenue of $6.7 billion, missing analyst expectations of $6.97 billion. The streaming unit was the standout performer, with revenue up 17% year on year as Paramount+ benefited from subscriber growth. Traditional television advertising continued to decline, and the film group posted mixed results despite a 30% rise in revenue from the consolidation of Skydance.
To help reach its new savings target, Paramount Skydance will continue cutting jobs. The company said about 1,600 positions will be eliminated as it divests Telefe in Argentina and Chilevisión in Chile.
These reductions follow roughly 1,000 layoffs in late October and another 600 employees who accepted voluntary severance packages rather than returning to the office full time. In October, the company also shed about 2,000 US jobs as part of its initial $2 billion cost‑cutting plan.
Ellison’s letter to investors emphasised flattening the organisational structure and enhancing agility to support rapid decision‑making. The company expects restructuring to conclude by the end of 2027 and estimates related costs of up to $1.3 billion. Beyond staff reductions, management has signalled that savings will come from consolidating production, distribution and technology operations across the merged entity.
Reports indicate that asset sales in Latin America are part of the strategy. The company is exploring the divestiture of its broadcast networks Telefe in Argentina and Chilevisión in Chile. Selling those holdings would reduce headcount while freeing resources for investment in streaming and film projects.
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Despite the deep cuts, Paramount Skydance plans to invest more than $1.5 billion in programming next year to boost its streaming video business and strengthen the film studio. Ellison said the company would channel a large portion of savings into new content for Paramount+ and theatrical releases.
Analysts note that additional spending could help differentiate the service and improve engagement. The company plans to release at least 15 movies annually starting in 2026, reflecting a commitment to a larger film slate.
Management forecasts total revenue of about $30 billion for 2026, slightly above analysts’ estimates of $29.8 billion. The growth outlook rests on expanding the streaming subscriber base, implementing price adjustments and capturing efficiencies from the streamlined organisation.
While Paramount Skydance has reportedly explored acquiring Warner Bros. Discovery and other rivals, Ellison told investors that there are “no must‑haves” for the company and stressed a “buy versus build” philosophy. Investors appear to welcome the clarity; shares rose after the announcement of the higher savings target. The coming years will reveal whether the combination of aggressive cost controls and strategic investments positions Paramount Skydance for sustainable growth in a competitive media landscape.
