By Irshad Khan 
The entertainment industry is experiencing its most devastating wave of layoffs in decades, with major studios including Paramount, Disney, Warner Bros. Discovery, and Amazon cutting thousands of positions throughout 2025 in what industry insiders are calling “The Great Hollywood Downsizing.” Paramount began laying off over 1,000 employees on October 29, 2025, as part of new CEO David Ellison’s plan to eliminate approximately 2,000 jobs—roughly 10% of the combined Paramount-Skydance workforce—in pursuit of $2 billion in cost savings. These cuts represent just the latest chapter in an ongoing crisis that has seen Hollywood shed tens of thousands of jobs since 2024, driven by streaming losses, declining theatrical revenues, industry consolidation, and the accelerating adoption of artificial intelligence.
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Paramount Begins Massive Layoffs Under New Leadership
On Wednesday, October 29, 2025, Paramount initiated the first wave of layoffs that will ultimately eliminate approximately 2,000 positions from the newly merged Paramount-Skydance entity. CEO David Ellison announced via internal memo that approximately 1,000 U.S.-based employees would be let go immediately, with another 1,000 jobs—including international positions—to follow in subsequent weeks. The cuts impact virtually every division of the company, including CBS News, Comedy Central, MTV, Nickelodeon, BET, Paramount Pictures, and the historic Melrose Avenue studio lot.
In his memo obtained by The Hollywood Reporter, Ellison stated: “I want to be as open and direct as possible about the reasons behind these changes. 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.” The New York Times reported that Ellison characterized the layoffs as necessary to eliminate “duplicate roles or phasing out positions that no longer align with Paramount’s shifting priorities.”
The Numbers: A 10% Workforce Reduction
The 2,000 planned job cuts represent approximately 10% of the combined Paramount-Skydance workforce of roughly 20,000 employees. Paramount alone employed around 18,000 people globally before the merger, while Skydance’s workforce numbered fewer than 2,000. These reductions are part of Ellison’s publicly stated goal to achieve “$2 billion in synergies”—corporate terminology typically referring to cost reductions achieved through eliminating redundant positions and streamlining operations following mergers.
The LA Times noted that “Paramount has been shedding staff for years,” with more than 800 people (about 3.5% of the workforce) laid off in June 2025 prior to the Skydance acquisition, and 2,000 positions (15% of staff) eliminated in 2024. This pattern of continuous downsizing has left remaining employees in a state of perpetual anxiety about job security, creating what CNN described as workers being “particularly anxious about the impending layoffs this fall.”
CBS News and Motion Picture Division Hit Hard
CBS News is facing particularly severe cuts, with CNN reporting that nearly 100 jobs are expected to be eliminated from the news division. These layoffs occurred just days after Ellison appointed conservative commentator Bari Weiss as editor-in-chief following his acquisition of her startup, The Free Press. The timing raised questions about the future editorial direction of CBS News and whether the cuts were related to Ellison’s broader restructuring or connected to Weiss’s appointment.
The motion picture division also experienced significant reductions. Deadline reported that Randy Spendlove, President of Worldwide Music for Paramount Pictures, is exiting the company along with numerous executives across production, marketing, and music departments. Paramount Pictures Co-Chairs Dana Goldberg and Josh Green sent an emotional memo to staff: “We want to take a moment to acknowledge the departure of valued colleagues and express our sincere appreciation for their contributions, commitment, and the influence they have had on our studio.”
Industry-Wide Crisis: Amazon, Disney, Warner Bros. Discovery
Paramount’s layoffs are part of a broader entertainment industry crisis affecting virtually every major studio and streaming platform. Amazon led October’s downsizing wave with plans to eliminate approximately 30,000 roles—nearly 10% of its white-collar workforce—including 14,000 corporate positions explicitly attributed to “the advance of AI,” according to the Economic Times. Amazon’s video game development and publishing divisions were particularly hard hit.
Disneyland Resort laid off approximately 100 cast members from various departments in late October, while Fifth Season trimmed under 20 staffers from its 160 employees (a 10% reduction). These cuts come as Disney, under Dana Walden’s leadership, is “trimming its TV and streaming teams, shifting focus towards consolidating content around Disney+,” according to Reddit discussions citing Puck’s reporting. Warner Bros. Discovery has also implemented layoffs in its cable TV unit following a “$9 billion write-down last year amid declining revenues.”
The Root Causes: Streaming Losses and Industry Transformation
Multiple structural forces are driving Hollywood’s downsizing. First, the streaming era’s economics have proven unsustainable. Studios invested billions building streaming platforms and producing content during the “Peak TV” era, only to discover that most streaming services lose money. As one Reddit user summarized Puck’s analysis: “Studio leaders have committed to producing fewer films and television shows, necessitating a smaller workforce. Additionally, this represents a gradual restructuring within Hollywood. The industry is slowly confronting the excesses of the television era.”
Second, traditional revenue streams continue collapsing. Cable television subscriptions are declining precipitously, theatrical attendance remains below pre-pandemic levels, and advertising revenues are shifting to digital platforms outside studio control. Third, industry consolidation through mergers like Paramount-Skydance creates immediate pressure to eliminate “redundant” positions when two companies combine operations. Finally, artificial intelligence is increasingly replacing human workers in visual effects, script coverage, and other creative support roles.
The Human Cost: Writers, Producers, and Below-the-Line Workers
The layoffs disproportionately impact below-the-line workers—editors, producers, writers, crew members, and support staff who lack the negotiating power of A-list talent. As one analysis on the LightInside.TV blog noted: “Freelance jobs are drying up, streaming is slowing down, AI is replacing humans, and production is leaving Los Angeles altogether. This article breaks down what’s really happening and what it means for your career, your creativity, and the future of storytelling itself.”
The 2023 WGA and SAG-AFTRA strikes, which successfully secured some protections around AI and streaming residuals, have been followed by what many workers describe as retaliation through reduced hiring and increased layoffs. As the Reddit discussion emphasized: “Following Great Netflix of 2 and dual strikes by industry guilds a year later, a significant number of traditional studio jobs have vanished, and this may just be the start of a larger trend.”
Ellison’s Vision: Return to Office and Corporate Culture Shift
Beyond the immediate layoffs, David Ellison is implementing broader cultural changes at Paramount. In September, he announced via memo that all employees must return to the office five days per week starting January 5, 2026. Those unwilling or unable to return to full-time in-office work were offered severance packages—effectively voluntary layoffs disguised as policy changes.
During an August press conference following the merger’s completion, Paramount President Jeff Shell stated: “We don’t want to be a company that has layoffs every quarter. It’s going to be difficult. It’s always challenging, but we aim to avoid being a business that lays off employees every quarter.” However, critics note that Paramount has implemented layoffs annually for years, making Shell’s promise ring hollow to anxious employees facing an uncertain future.
What’s Next: More Consolidation and Potential WBD Acquisition
The industry turmoil shows no signs of abating. CNN reported that Ellison has been “eyeing Warner Bros Discovery,” with the newly restructured Paramount reportedly preparing “a substantial $60 billion offer to acquire Warner Bros. Discovery.” WBD’s board has rejected initial proposals but initiated a strategic assessment that “may lead to a complete sale of the company, a continuation of the current plan to divide WBD into two entities, or another potential outcome.”
Further consolidation would likely trigger additional massive layoffs as merged entities eliminate redundant positions. The pattern established by the Paramount-Skydance merger—10% workforce reductions targeting “redundancies”—would almost certainly repeat at larger scale if Paramount successfully acquires WBD, potentially eliminating thousands more jobs across both companies’ combined operations.
As Hollywood continues its painful transformation from the Peak TV era to a leaner, more consolidated industry focused on profitability over growth, workers throughout the entertainment sector face unprecedented uncertainty. The layoffs hitting major studios in late 2025 represent not temporary adjustments but fundamental restructuring that will permanently reduce employment opportunities in an industry that once symbolized the American Dream. For the tens of thousands who’ve lost their jobs this year, the dream factory has become a nightmare of economic insecurity and vanishing opportunities.