Business · Companies · 8 hrs ago
Skydance details plan for at least $6 billion in cost savings
Skydance, formed by combining Paramount and Warner Bros.
Discovery, plans at least $6 billion in savings over three years.
It says the savings will come from reducing duplicate corporate work, streamlining marketing, combining streaming and technology systems, and consolidating purchases.
The company expects at least $2.2 billion from corporate and back-office changes, including fewer management layers and greater use of artificial intelligence.
Skydance also plans to offer a Paramount+ and HBO Max bundle early next year, as a first step toward eventually combining the services.
The changes come as employees face voluntary buyouts, a five-day office policy and the prospect of layoffs as teams merge.
In its first quarterly results since the deal closed, legacy Paramount reported $7.03 billion in revenue and $1 billion in adjusted earnings before interest, taxes, depreciation and amortization, topping profit estimates.
Skydance says it will provide full-year guidance in its fourth-quarter earnings report early next year.
Skydance reported third-quarter results for legacy Paramount, with adjusted earnings before interest, taxes, depreciation and amortization of $1 billion, above analysts’ estimates.
Revenue was $7.03 billion, roughly in line with estimates, while adjusted earnings per share were 45 cents.
The results did not include the impact of the Warner Bros. Discovery acquisition, which closed after the quarter ended.
Skydance said it plans to achieve at least $6 billion in cost savings over the next three years.
The company’s leaders expressed confidence in its strategy, while investors have raised concerns about its debt and ability to grow profitably.
- Who
- Skydance, including the legacy Paramount business. Co-CEOs David Ellison and Ynon Kreiz lead the company.
- What
- Skydance reported third-quarter results, with adjusted earnings before interest, taxes, depreciation and amortization above estimates. It also outlined at least $6 billion in planned cost savings.
- When
- The results were reported on Monday, November 9, 2026.
- Where
- Not stated
- Why
- Skydance said the results and savings plans reflect its business strategy following the combination with Warner Bros. Discovery.
Skydance leadership
Investors concerned about debt and growth
Debt and growth
Skydance leadership
The company’s leaders expressed confidence in its ability to compete and grow.
Investors concerned about debt and growth
Investors and analysts have raised concerns about the company’s debt and its ability to grow profitably.
Cost savings
Skydance leadership
Skydance said it is confident it can achieve at least $6 billion in savings over three years.
Investors concerned about debt and growth
Not stated
Warner Bros. Discovery acquisition closed, so its impact was not included in the reported results.
Skydance began offering voluntary employee buyouts and adopted a five-day-per-week in-office policy.
Skydance reported third-quarter results for legacy Paramount and outlined its cost-saving plans.
Skydance said it plans to offer a bundle of Paramount+ and HBO Max.
- Revenue
- $7.03 billion
- Adjusted EBITDA
- $1 billion, above the $913.5 million estimate
- Adjusted earnings per share
- 45 cents
- Planned cost savings
- At least $6 billion over three years
- Debt load
- Roughly $79 billion
- Fourth-quarter headwind
- $200 million from theatrical underperformance at Warner Bros. studio
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