Skydance maps out six billion dollar cost cuts

Six billion dollar savings plan

Skydance announced it will cut at least six billion dollars in costs over the next three years by combining duplicate operations across its merged Paramount and Warner Bros. Discovery businesses.

“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 fifty billion dollars.”

Back-office cuts lead the way

At least two point two billion dollars will come from eliminating redundant back-office and corporate functions, including management layers, increased artificial intelligence use, and rationalizing office space.

Marketing and streaming savings

Skydance expects one billion dollars from streamlining marketing and promotional spending, and one point four billion from unifying streaming businesses and integrating back-end technology platforms.

Third-party spending cuts

A final one point four billion dollars in savings will come from optimizing third-party spend, eliminating overlapping expenses, and consolidating purchasing decisions to one centralized group.

Cuts already underway

Skydance has begun offering voluntary buyouts to employees, adopted a five-day-per-week in-office policy, and saw eight executives depart last week, four from each legacy company.

Streaming bundle coming early next year

Skydance will offer a bundle of Paramount Plus and HBO Max streaming services early next year at greater value, moving toward eventually merging the two platforms into a single service.