Paramount says it can achieve post-merger cost-cutting targets with Warner Bros. without large-scale layoffs, but Hollywood is skeptical

Golden Ten Data, March 9th｜Shortly after winning the acquisition battle for Warner Bros. Discovery, Paramount executives announced a plan to cut $6 billion in costs over the next three years for the merged company, but insisted that this could be achieved without large-scale layoffs. However, Hollywood is not convinced. Several of Hollywood's most influential unions and creative professionals have condemned this $110 billion deal that merges two industry giants, calling it anti-competitive and claiming it will reduce jobs and opportunities. Paramount CEO David Ellison told investors last Monday that the cost savings would mainly come from "non-labor resources"—primarily through the integration of technology platforms, external service contracts, real estate, and other corporate management expenses. Ellison mentioned plans to merge the two companies' streaming services, HBO Max and Paramount+, into a single platform, stating that this would significantly reduce business overlap and costs. However, analysts and media industry experts say that after the deal is completed, the company will bear a debt burden of $79 billion, and combined with Ellison's commitment to increase annual film production to 30 films, which will bring enormous costs, large-scale layoffs may be inevitable.