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Paramount Global Stock Climbs on Head Count Reductions and Possible Skydance Merger

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Andrew R. Michaud

January 25, 2024

Paramount Global stock saw an increase on Thursday due to reports of head count reductions and a potential merger with Skydance Media. In an internal memo reviewed by insiders, Paramount's CEO Bob Bakish emphasized the need to "spend less" and stated that this would involve further job cuts globally. While the company did not disclose specific numbers, Paramount joins other major companies, such as Microsoft, Google, Amazon.com, and Wayfair, in implementing layoffs this year.

Bakish highlighted that Paramount will focus its resources on "powerful, resonant franchises, films, and series that perform globally across platforms" in 2024. As a result, the company will produce fewer original content for its platforms. Despite the cost-saving measures, Paramount's stock has fallen by 38% in the last 12 months.

The surge in stock price was not solely driven by the news of cost-cutting initiatives. Reports emerged on Wednesday suggesting that Skydance Media and its financial backers are exploring the possibility of merging with Paramount. CNBC reported on this potential deal, but both Paramount and Skydance declined to comment at this time.