Paramount Skydance to slash 1,600 more jobs after revenue disappoints — but issues upbeat forecast

Paramount Skydance has announced plans to invest $1.5 billion in programming next year following the completion of an $8.4 billion merger. The company’s shares rose by 7% in after-hours trading.

After the merger of Paramount Global and Skydance Media in August, new leadership was established at the media company.

Paramount anticipates profitability in its streaming business this year and expects further growth in 2026. Paramount+ added 1.4 million new subscribers in the third quarter, bringing the total to 79 million. The company plans to increase prices for the service in the U.S. early in the first quarter of 2026.

CEO David Ellison has been focused on revitalizing the studio, recently winning a bidding war to distribute a new film starring Timothée Chalamet.

Paramount is streamlining its studio and distribution operations under one leadership team and plans to implement a unified technology stack for Paramount+ and Pluto TV to drive cost efficiencies and enhance performance.

The company also announced job cuts as part of a strategic review, in addition to the layoffs in late October. Paramount has also expressed interest in acquiring Warner Bros. Discovery.

For the fourth quarter, Paramount Skydance expects revenue between $8.1 billion and $8.3 billion, surpassing estimates of $8 billion. In the third quarter, the company reported revenue of $6.7 billion, slightly below estimates.