Paramount has begun laying off more than 2,000 employees, a long-anticipated step following its merger with Hollywood studio Skydance, The New York Times reports.

Chief executive David Ellison informed staff Wednesday that the reductions will begin with about 1,000 U.S.-based workers across divisions including CBS News, Paramount Pictures, and cable networks such as MTV, Nickelodeon, and BET.

Additional rounds of layoffs will take place internationally in the coming weeks. In total, roughly 10% of the combined company’s workforce will be affected.

In a memo to employees, Ellison said the layoffs were aimed at eliminating overlapping roles and winding down positions that no longer align with the company’s strategic direction.

“These decisions are never made lightly, especially given their effect on our colleagues who have made meaningful contributions to the company,” he wrote.

Paramount’s workforce has faced years of restructuring, and employees have been bracing for this move since the Skydance merger was announced in July 2024. Following the closing of the merger in August 2025, the companies had pledged to achieve $2 billion in cost savings, largely through consolidation and efficiency measures.

Ellison signaled earlier this year that sweeping changes were coming. In September, he told staff they would be expected to return to the office five days a week, adding that those unable or unwilling to do so could opt for severance packages.

Several senior executives have already exited ahead of the cuts. Pam Kaufman, head of Paramount’s international operations, announced her departure in September after more than 25 years with the company. Chris Aronson, Paramount Pictures’ president of U.S. distribution, said he will leave in December.

Layoffs and corporate consolidations have become routine across Hollywood as studios pursue aggressive cost-cutting to satisfy investors and adapt to a changing media landscape.

The timing of Paramount’s cuts has fueled industry speculation, as Ellison is reportedly preparing a potential bid for Warner Bros. Discovery, the parent company of CNN, HBO, and Warner Bros. Pictures.