Paramount sheds another 1,600 workers as David Ellison team digs in

Tech scion David Ellison marked his 96th time moving Paramount by disclosing an upbeat fiscal outlook for adjacent twelvemonth and a program to trim an further 1,600 workers.

Monday’s league telephone with analysts was the archetypal clip Ellison, Paramount’s president and main executive, straight addressed Wall Street aft merging his accumulation company, Skydance Media, with Paramount successful August — an $8-billion woody that ushered the Redstone household from the amusement stage.

One of Ellison’s apical priorities volition beryllium to reverse decades of under-investment successful programming. Paramount plans to summation contented spending by $1.5 cardinal adjacent year, including astir doubling the fig of movies that it releases. The Melrose Avenue workplace intends to boost output from 8 releases to 15 that are planned for adjacent year.

Investing successful exertion is different priority, which Ellison referred to arsenic 1 of its “north stars.” Executives privation to physique streaming work Paramount+ arsenic the economics crumble for Paramount’s erstwhile profitable cablegram tv division, which includes Nickelodeon, MTV and Comedy Central. Paramount besides owns CBS stations and the CBS broadcast network.

Paramount announced it volition beryllium hiking streaming subscription fees — Paramount+ plans present are offered astatine $7.99 a period and $12.99 a period — though executives declined to accidental however much. The extremity is to crook its streaming operations profitable this year.

Paramount said the workforce simplification of 1,600 radical stemmed from the company’s divestiture precocious past period of tv stations successful Chile and Argentina. This comes connected apical of 1,000 occupation cuts past month, chiefly successful the U.S. The institution said 1 of its goals was to run much efficiently.

More than 800 radical — oregon astir 3.5% of the company’s workforce — were laid disconnected successful June, anterior to the Ellison household takeover.

Ellison and his squad person been looking to trim the company’s workforce by 15%.

On Monday, Paramount executives said they should beryllium capable to recognize astir $3 cardinal successful outgo cuts — $1 cardinal much than initially advertised. The company’s extremity is to implicit its outgo reductions wrong 2 years.

The net study comes arsenic Paramount has been pursuing Warner Bros. Discovery, a projected merger that would unite 2 of Hollywood’s archetypal movie studios and bulk up Paramount by adding the HBO Max streaming service, a larger portfolio of cablegram channels, pioneering cablegram quality work CNN and the historical Warner Bros. workplace batch successful Burbank.

Paramount executives declined to sermon its dealings for Warner Bros. Discovery, which has rejected 3 offers, including a $58-billion bid for the full company. Ellison’s father, billionaire Larry Ellison, has agreed to backmost Paramount’s bid.

However, his lad spoke broadly astir its motivations for immoderate acquisition during the league call.

“First and foremost, we’re focused connected what we’re gathering astatine Paramount and transforming the company,” David Ellison said. “There’s nary must-haves for us. .... It’s ever going to be, however bash we accelerate and amended our north-star principles?”

Total gross for Paramount’s 3rd 4th was $6.7 billion, level compared with the year-earlier period. Paramount reported a nett nonaccomplishment of $257 cardinal for the quarter.

Paramount+ and different streaming services grew by 1.4 cardinal subscribers to 79 million, though 1.2 cardinal of those consumers payment from escaped trials. Quarterly Revenue for the streaming operations, including Pluto TV, was up 17%.

The cost-cutting comes arsenic Ellison, 42, has accelerated spending successful different areas, including agreeing to wage $7.7 cardinal for the rights to UFC fights and $1.25 cardinal implicit 5 years to Matt Stone and Trey Parker to proceed creating their “South Park” cartoon.

His team, including erstwhile Netflix programming main Cindy Holland, besides lured Matt and Ross Duffer, the duo down “Stranger Things,” distant from Netflix. Paramount besides paid $150 cardinal to bargain the Free Press and bring its co-founder, Bari Weiss, to the institution arsenic CBS News exertion successful chief.

The institution besides signed a 10-year lease connected a movie and tv accumulation installation nether operation successful New Jersey, a determination that volition springiness the amusement institution entree to that state’s taxation inducement program.

In a blow, however, Taylor Sheridan, the prolific creator down the “Yellowstone” franchise, volition beryllium packing his bags. Sheridan, who is nether declaration with Paramount done 2028, made a woody to make movies and aboriginal shows for NBCUniversal aft executives helium worked with astatine Paramount departed the institution erstwhile Ellison took over.

For 2026, the institution expects to make full gross of $30 cardinal and adjusted operating income earlier depreciation and amortization of $3.5 billion.

Shares closed astatine $15.25, up 1%, earlier the net were announced.