Paramount employees get even more bad news following $8 billion merger

Core Insights - Paramount and Skydance have completed an $8 billion merger, with Paramount projecting full-year revenue of $30 billion for fiscal 2026 [1] - The company anticipates profitability growth next year, aided by a planned price increase for its streaming service, Paramount+ [3] Financial Performance - Paramount+ experienced a 17% year-over-year revenue increase, while TV media revenue declined by 12% due to reduced advertising and affiliate revenue [3] - The company has engaged in significant spending, including a $7.7 billion deal with TKO Group for exclusive U.S. broadcast rights to the Ultimate Fighting Championship [3] Cost-Cutting Measures - New CEO David Ellison announced a $2 billion cost reduction plan, which includes job cuts, with expectations that the layoffs will be "swift and painful" [4][7] - CBS News has already laid off employees as part of a broader reduction of over 1,000 positions [5] Industry Context - Other streaming services, such as Disney and Apple TV+, have also raised subscription prices, indicating a trend in the industry towards increasing revenue through higher consumer costs [6]