Paramount Accelerates Toward $3B in Cost Savings Amid Steep Cuts and Rising Churn
ParamountPSKY is in the thick of its biggest transformation in years. The company is now targeting at least $3B in run-rate efficiencies — a jump from the $2B originally projected when the merger closed in August. CEO David Ellison’s aggressive reset includes hiking Paramount+ subscription prices again in Q1 2026, following two previous increases in June 2024 and early 2023. The push for efficiency is now reaching deep into the company’s ranks.
- Around 600 employees opted for severance instead of returning to a five-day office schedule starting in January, signaling pushback against the rollback of remote work.
- Another wave of cuts hit about 2.6K workers — including 1.6K tied to asset sales in Argentina and Chile, and roughly 1K who received termination notices in late October.
Rebound economics: President Jeff Shell admitted summer churn took a toll, but said the NFL-fueled fall helped momentum rebound. Even as the company trims costs elsewhere, Ellison’s been signing billion-dollar checks — $7.7B over seven years for UFC rights, exclusive South Park and Stranger Things creator deals, and Call of Duty development partnerships. Ellison remained coy about Warner Bros. Discovery aspirations, insisting “there’s no must-haves for us” — though reports indicate three rejected offers.