Paramount Skydance has reached a turning point as the company prepares for one of the largest workforce reductions in its history. The studio will begin laying off around 2,000 U.S. employees during the week of October 27, according to reports from Variety.

This move is part of a larger $2 billion cost-cutting strategy introduced by the recently appointed CEO, David Ellison, signaling a bold effort to streamline operations following the company’s $8.4 billion merger earlier this year.

The merger between Skydance Media and Paramount Global was completed in August 2025 after months of negotiations, scrutiny, and boardroom discussions. It created a powerful new entity aimed at redefining studio management and content production in the streaming era.

However, with overlapping departments and expanding financial commitments, the company has turned to tough decisions to achieve sustainable growth.

These layoffs represent a critical phase in integrating the two entertainment giants. The move is not just about cutting jobs; it’s about aligning the merged organization under a unified vision focused on profitability and modernized media production.

Variety’s report further indicated that additional international job cuts are expected in the following weeks. Paramount Skydance is likely to release a complete breakdown of restructuring costs and employment impacts during its third-quarter earnings presentation, slated for November 10.

The Man Steering the Transition: David Ellison

David Ellison, who took over as Paramount Skydance’s CEO following the merger, is now responsible for redefining how the studio functions in a market under pressure from changing viewer habits and streaming competition.

Known for his hands-on production style and long-standing passion for cinema, Ellison has overseen major Skydance hits such as “Top Gun: Maverick,” “Mission: Impossible – Fallout,” and “Jack Reacher.”

His leadership philosophy emphasizes efficiency, creativity, and strategic reinvestment. Insiders close to Ellison suggest that his primary focus is maintaining the company’s creative excellence while improving its financial agility.

Under his direction, Paramount Skydance aims to redirect resources toward fewer but higher-impact productions that align with audience demands both in theatrical and streaming formats.

Industry analysts view Ellison’s approach as a necessary, albeit painful, shift. Over the past several years, traditional media companies have grappled with rising production costs, softening advertising markets, and the dominance of streaming services.

Paramount’s recent financials revealed pressure across several segments, particularly linear television, while its streaming arm, Paramount+, continues to invest heavily in original programming and technology upgrades.

For Ellison, the coming months will serve as an opportunity to prove that he can steer the legacy studio toward long-term relevance, a challenge that many of Hollywood’s top executives currently share.

Understanding the Broader Impact of the Layoffs

As of December 2024, Paramount employed nearly 18,600 full- and part-time employees and around 3,500 project-based staff. The reduction of 2,000 positions equates to more than 10% of its U.S. workforce, making it a significant adjustment.

These changes are expected to affect departments across marketing, film production, distribution, and corporate management.

Sources familiar with the restructuring indicated that layoffs will begin across administrative roles first, followed by adjustments within creative and studio divisions. Contractors and short-term staff are also likely to face reduced project assignments as the studio consolidates production schedules.

While such large-scale workforce changes often generate uncertainty, Paramount Skydance is reportedly setting up internal assistance programs to help affected employees transition.

The company is also considering offering extended health benefits and reskilling opportunities where possible, especially for roles that could evolve within the digital media spectrum.

Ellison has framed these changes as part of a strategic evolution toward a leaner, faster, and more agile organization ready to tackle the streaming race with confidence.

He believes consolidation will help the company redirect funds into original content and franchise expansion, two areas that continue to drive revenue despite broader market contractions.

Industry Reaction and Global Context

Hollywood insiders have been quick to react to the reports of mass layoffs. Many recognize the move as part of a wider shift sweeping across the entertainment sector.

Studios such as Disney, Warner Bros. Discovery, and Netflix have all implemented aggressive cost-reduction plans in recent years, driven by similar financial realities: rising content spending and growing investor demand for profitability.

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Paramount Skydance (Credit: BBC)

Analysts say the Paramount-Skydance layoffs reflect a global correction phase after a decade of streaming-driven growth and expansion. As the post-pandemic boom slows, companies are facing renewed scrutiny on their margins, prompting executives to control budgets and deliver higher returns on smaller slates.

This broader restructuring wave also points to a change in storytelling strategies. Rather than producing a large volume of titles, many studios are moving toward fewer, event-style releases that resonate strongly with audiences and ensure better returns.

Ellison’s prior success in producing blockbuster franchises underlines his confidence in this creative direction.

Despite the difficult news, industry observers see potential for renewal within Paramount Skydance. The combined expertise of Paramount’s established distribution network and Skydance’s innovative production methods could provide the foundation for a revitalized entertainment brand capable of competing on a global scale.

The coming months will be crucial as the company finalizes its restructuring plans and communicates additional international updates. Investors will closely watch its third-quarter earnings report due November 10 for clarity on new cost targets, asset consolidations, and long-term strategy implementation.

Analysts believe that cutting $2 billion in expenses could significantly improve Paramount Skydance’s liquidity position and allow for reinvestment in high-performing divisions such as Paramount Pictures, Paramount+, and Skydance Animation.

However, success will depend on effectively managing creative output without dampening morale or reducing the company’s competitive advantage in storytelling.

The entertainment industry often operates on cycles of reinvention, and Paramount Skydance’s current phase is no different. Although the layoffs present immediate challenges, they also mark the beginning of a reshaped corporate structure led by a young and determined executive team.

Ellison’s leadership will likely determine whether the studio emerges stronger and more unified or faces further turbulence in the changing media economy.

For now, one thing is clear: the merger between Paramount Global and Skydance Media was only the beginning.

The next chapter for the combined company rests on how effectively it can balance financial discipline with creative ambition. This challenge will test both leadership and legacy as the entertainment industry continues its transformation.

Bollywood is in the throes of a digital storm as its top stars rush to courts seeking protection against deepfakes, AI-generated content, and unauthorized usage of their identities on social media.

The latest high-profile case involves Akshay Kumar, who petitioned the Bombay High Court on Wednesday to urgently restrain and remove fake content that misuses his image, voice, and persona.

Justice Arif Doctor heard the petition and indicated the court would likely grant interim protection, underscoring the severity of the threat.

Kumar joins a distinguished and growing list of celebrities, including Aishwarya Rai Bachchan, Abhishek Bachchan, Amitabh Bachchan, Hrithik Roshan, Karan Johar, and Asha Bhosle, who have secured legal protections in similar battles against AI-driven violations.

Alarming Cases of AI Manipulation

The scale and sophistication of these violations reveal a disturbing trend. Akshay Kumar’s case alone highlights examples that have gone viral: an AI-generated fake trailer depicting him as Uttar Pradesh Chief Minister Yogi Adityanath, which drew nearly two million views before being taken down, and a manipulated video showing him making controversial remarks about Rishi Valmiki, sparking widespread protests.

Senior counsel Birendra Saraf explained that some AI platforms now offer tools dubbed “AI Akshay Kumar V2 Voice,” which can reproduce the actor’s vocal tone from any text input with frightening accuracy.

The petition also referenced obscene blogs, unauthorized gambling endorsements, counterfeit merchandise, and deepfake content spreading across popular platforms like YouTube, Instagram, Facebook, and X (formerly Twitter), some of it originating from the dark web.

Bachchan Family Targets YouTube Over AI Content

The Bachchan family faces some of the most disturbing digital violations. Abhishek and Aishwarya Rai Bachchan filed an extensive 1,500-page suit against YouTube detailing “sexually explicit” AI-manipulated videos.

This includes entirely fabricated clips, such as one showing Abhishek kissing an actress and another portraying Aishwarya dining with Salman Khan as an angry Abhishek watches. The Delhi High Court has already ordered the removal of over 500 links, with the couple seeking substantial damages totaling $450,000.

Personality rights provide individuals the legal authority to control and protect the commercial and public use of their name, image, voice, signature, and likeness.

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Aishwarya Rai Bachchan (Credit: NDTV)

These rights encompass the Right to publicity, preventing unauthorized commercial use, and the Right to privacy, guarding against deepfake content, morphed visuals, and fake endorsements.

Courts in India have acted proactively despite lacking AI-specific legislation. The Delhi and Bombay High Courts have issued orders restraining unauthorized AI content and commercial exploitation while also making clear distinctions to protect noncommercial fan engagement.

Justice Manmeet Pritam Singh Arora notably stated, “We cannot have fan clubs taken down without due process. Instagram use includes both commercial and recreational purposes.”

This surge in legal actions comes amid the democratization of AI technology, now accessible to anyone with a smartphone and basic skills to generate convincing fake videos and voice clones.

India’s massive digital presence, with over 600 million YouTube users alone, provides fertile ground for the rapid proliferation of such content.

Celebrities’ well-documented images and voices make them prime targets, with their influence driving fake content virality and real-world consequences that include public unrest and financial scams.

The Bachchans’ case underscores a new frontier: blocking websites from uploading videos that train AI platforms without consent, fearing misinformation and bias in artificially generated content.

International Impact and Precedents

Notably, Anil Kapoor’s 2023 legal victory against 16 defendants for unauthorized AI misuse positioned him on Time’s 100 Most Influential People in AI list. His case is often likened to Scarlett Johansson’s fight against OpenAI over voice imitation, symbolizing the global challenges celebrities face in protecting digital likenesses.

Yet, legal experts argue that India and many countries urgently need comprehensive AI laws addressing deepfakes and digital impersonation, not only for celebrities but also for ordinary citizens. These laws should include clear penalties for offenders and hold platforms accountable for hosting unauthorized content.

It remains clear that technology’s rapid advance will keep pushing courts, celebrities, and platforms toward new legal and ethical boundaries.

While courts have shown willingness to protect personality rights through injunctions and takedown orders, broader legislative frameworks are required to tackle AI misuse comprehensively.

For Akshay Kumar and his peers, the fight extends beyond individual cases; it is about shaping protections for all against emerging technological threats and ensuring that AI remains a tool for creativity rather than exploitation.