Skydance details plan for at least $6 billion in savings

The largest projected reduction, at least $2.2 billion, would come from eliminating duplicate back-office and corporate roles, including management layers, expanding the use of artificial intelligence and reducing office space. Skydance also expects to save at least $1 billion by streamlining marketing and promotional spending.

About $1.4 billion is projected from combining streaming businesses and broadcast architecture and integrating back-end technology. A further $1.4 billion would come from reducing third-party spending, removing overlapping expenses and centralizing purchasing, the company said.

Skydance said it was confident in the target, citing its cost-cutting program at Paramount, which it expects to deliver more than $2.7 billion in run-rate efficiencies by the end of 2026. Initial steps are already underway: last month, the company offered voluntary buyouts ahead of layoffs and introduced a five-day-per-week in-office policy. Eight executives—four from Warner Bros. and four from Paramount—left last week.

The company has said it plans to combine Paramount+ and HBO Max eventually. On Monday, it said it would first offer a bundle of the two services early next year, at what it described as “an even greater value.”

Legacy Paramount Skydance reported third-quarter revenue of $7.03 billion, roughly matching StreetAccount’s $7.04 billion estimate. Adjusted earnings before interest, taxes, depreciation and amortization were $1 billion, above the $913.5 million estimate. Adjusted earnings per share were 45 cents; the company said those results were not immediately comparable with StreetAccount’s estimate. The figures exclude Warner Bros. Discovery, whose acquisition closed after the quarter ended.

Skydance outlined the combined company’s units as studios, direct-to-consumer and TV. It plans to give full-year guidance with its fourth-quarter results early next year, saying it will provide annual guidance while continuing quarterly updates and, where applicable, forward-looking commentary.