Skydance Details $6 Billion Cost-Cutting Plan After Paramount–Warner Bros. Merger

NEW YORK, Nov. 10 (TodayViralUSA) — Skydance, the media giant formed by combining Paramount Skydance and Warner Bros. Discovery, on Monday laid out how it plans to strip at least $6 billion in annual costs out of the merged company over the next three years.

The breakdown came in a letter to shareholders released with Paramount Skydance’s third-quarter results. “By combining two global streaming services, two film and TV studio groups, two television portfolios, and overlapping corporate functions, we can reduce duplicative spend across an expense base of more than $50 billion,” the company wrote.

Where the savings will come from

According to the letter, the targets are:

• Corporate overhead and real estate: at least $2.2 billion, by consolidating back-office functions, cutting management layers, scaling AI workflows and shrinking the office footprint while keeping production lots
• Marketing: at least $1 billion, by unifying media planning and buying across business units
• Technology: at least $1.4 billion, by merging streaming and broadcast systems and using AI coding tools
• Procurement: at least $1.4 billion, by centralizing purchasing across hundreds of vendors

The company said it expects to realize 30% of the savings in the first year and 70% by the end of the second. Separately, it said the legacy Paramount efficiency program is on track to exceed $2.7 billion by the end of 2026, and it raised that target to more than $3 billion.

Business Insider reported that the company has said most of the savings will not come from layoffs, though employees remain uneasy as the two organizations combine.

Streaming bundle coming in 2027

Skydance reported 203 million combined global streaming subscribers for the quarter, including 82.2 million on Paramount+, up 600,000 from the end of June, Media Play News reported. The legacy HBO and HBO Max base fell by roughly 4.9 million, partly as overlapping household accounts were removed.

Paramount+ revenue grew 21% from a year earlier on subscriber gains and higher prices, and total streaming revenue rose 11% to $2.5 billion. Chief Executive David Ellison said Paramount+ and HBO Max will be offered together in a unified bundle in early 2027. The company said this is the last quarter it will report subscriber figures.

Shares fell after the results, according to Investing.com.