Paramount to lay off 2,000 workers shortly after merging with Skydance

In widely expected job cuts after completion $8 billion merger with SkydanceParamount has begun layoffs that will affect about 2,000 employees.

On Wednesday, Paramount initiated about 1,000 such layoffs across the company (Paramount Skydance owns CBS News). The remaining cuts are expected to be made at a later date. Overall, the 2,000 job cuts represent about 10% of Paramount's total workforce.

“These decisions are never made lightly, especially given the impact they have on our colleagues who have made significant contributions to the company,” CEO David Ellison wrote in a memo to employees Wednesday.

The prospect of job cuts has been looming over Paramount employees for some time. Ellison on Wednesday confirmed that the company has been working on a restructuring since the completion of its merger in August and noted that workforce reductions are “part of that process.”

It is not uncommon for businesses to initiate layoffs after a merger. When Skydance completed its purchase of Paramount, the combined company said it would seek “opportunities to optimize its business.” There are rumors that Paramount is also interested in purchasing Warner Bros. Discovery, home of HBO, CNN and DC Studios, among other brands.

Neither Paramount nor Warner have publicly confirmed the negotiations. But earlier this month Warner signaled it might be open to sell all or part of your business in light of the “undesirable interest”, the company said it had received it from several parties. The company has was reported to be persistent to Paramount's original approach. According to CNBC, which quoted As of last week, Warner had rejected three offers from Paramount, according to anonymous sources.