Layoff notices were being sent starting Wednesday to roughly 1,000 U.S. employees of Paramount, nearly three months after the entertainment giant's takeover by David Ellison's Skydance Media.
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Company executives indicated when the merger was completed in early August that cuts were on the horizon.
In a memo sent to employees Wednesday morning and obtained by various media outlets, Ellison said the cuts are essential to building a stronger company.
"We want to be as open and direct as possible about the reasons behind these changes," Ellison wrote in the memo. "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."
The Federal Communications Commission in late July approved Skydance's $8 billion takeover of Paramount.
Ellison wrote in his memo that layoff 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," he wrote. "Members of our HR team will be working closely with business unit leaders to share detailed information on benefits and transition services.
"... 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."
According to Deadline, roughly 1,000 U.S.-based employees will be impacted in the first round of layoffs, with another 1,000 expected to be let go in the future. The 2,000 workers represent about 10% of Paramount's global workforce.
It was not immediately clear how many of the layoffs are affecting Los Angeles-area workers.
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