Skydance plans to cut costs by at least $6 billion — CNBC

Skydance plans to cut costs by at least $6 billion over the next three years. The company disclosed a breakdown of the planned savings alongside the third-quarter report of the former Paramount Skydance, CNBC reports.

Where the savings will come from

Skydance expects to save at least $2.2 billion by reducing overlapping administrative and corporate functions. The plan also envisages cutting the number of management layers, making greater use of artificial intelligence and optimizing office space.

The company also wants to save at least $1 billion on marketing and promotion. About $1.4 billion is expected to come from unifying streaming services and television broadcasting architecture, as well as integrating back-office technologies. The remaining $1.4 billion is planned to be achieved by optimizing spending on third-party suppliers, eliminating duplicated expenses and centralizing procurement.

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Staff changes and streaming

The company said that some of the cuts have already begun. Last month, Skydance began offering employees voluntary departures ahead of official layoffs and introduced a mandatory five-day office workweek. Also, eight executives left the company last week — four each from Warner Bros. and Paramount.

Skydance had previously announced plans to eventually combine Paramount+ and HBO Max into one platform. The first step at the beginning of next year is expected to be a bundled offering of the two services. In the third quarter, the former Paramount Skydance posted $7.03 billion in revenue and $1 billion in adjusted EBITDA. The results do not account for the impact of the Warner Bros. Discovery acquisition, which was completed after the end of the quarter.