^{David Ellison, CEO of Skydance Media attends the 81st Annual Golden Globe Awards at The Beverly Hilton on Jan. 7, 2024 in Beverly Hills, California. | Kevin Winter | The Hollywood Reporter | Getty Images}

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Paramount Skydance is accelerating its cost-cutting efforts, expecting an additional $1 billion in merger savings on top of the $2 billion outlined when the merger closed in August. The announcement came alongside the company’s third-quarter earnings report, its first since the merger, signaling CEO David Ellison’s aggressive approach to streamlining operations while expanding content and streaming offerings.

Cost Cuts and Workforce Reductions

Ellison has made it clear that savings will be achieved through a combination of divestitures, restructuring, and workforce reductions. The company disclosed a new round of layoffs affecting approximately 1,600 employees tied to the sale of its South American assets, including Television Federal in Argentina and Chilevision in Chile. This follows a prior cut of around 1,000 employees announced earlier this year.

Additionally, the company implemented a mandatory five-day workweek policy beginning in January, offering buyouts to employees unwilling to return to full-time office work. About 600 employees opted to leave under this arrangement.

Ellison outlined that the $3 billion in run-rate efficiencies will be achieved incrementally, with $1.4 billion in savings expected by year-end and another $1 billion by the end of 2026.

Paramount+ Price Increase and Subscriber Strategy

Alongside cost-cutting measures, Paramount Skydance announced plans to raise prices for its streaming platform, Paramount+, in early 2026. The move aims to support investments in content, platform technology, and global expansion. Paramount+ currently boasts over 79 million subscribers worldwide, with notable subscriber fluctuations tied to sports seasons and programming launches.

Ellison emphasized that investment in content remains a priority, highlighting deals to secure live sports rights and high-profile partnerships. Paramount Skydance recently inked a seven-year, $7.7 billion deal with TKO Group for UFC and became the exclusive U.S., Canada, and Latin America home for Zuffa Boxing, a Saudi-backed professional boxing promotion.

Expanding Content Slate and Strategic Acquisitions

Ellison has also pursued premium content acquisitions and partnerships to boost subscriber engagement. Paramount+ signed a five-year exclusive deal with the creators of “South Park”, partnered with Activision for Call of Duty-based content, and brought on Matt and Ross Duffer, creators of Netflix’s “Stranger Things,” starting mid-2026.

The company is also rumored to be exploring a potential acquisition of Warner Bros. Discovery, which would provide access to the Warner Bros. film studio, HBO Max, CNN, TNT Sports, and other assets. While Ellison declined to comment on specific acquisition targets, he noted the company is evaluating both buy vs. build strategies to achieve long-term growth.

Financial Performance and Outlook

Paramount Skydance reported mixed third-quarter results, reflecting the early impact of merger integration and investment plans. While the combined company continues to prioritize long-term free cash flow generation, shares rose roughly 6% in extended trading following the earnings release.

Ellison outlined the company’s “North Star priorities,” focusing on growth businesses, global streaming expansion, and disciplined cost management. Despite workforce reductions and divestitures, the CEO emphasized that the company’s strategic initiatives position it for sustainable growth in an increasingly competitive streaming landscape.

Paramount Skydance’s approach highlights the delicate balance between cutting costs and investing in high-value content as it seeks to compete with rivals like Netflix, Disney+, and Amazon Prime Video in a crowded global streaming market.