How Paramount & Warner Bros. Discovery's merger could put thousands of jobs at risk while reshaping streaming services 

Paramount is reportedly willing to acquire the assets of Warner Bros. Discovery. Both are popular streaming and cable service platforms with some legacy channels in sports, entertainment, and news. Reports indicate several reasons for concern if the two actually merge, including how they would manage their workforce, potential cost-cutting measures, and further cultural and ethical conflicts, which are yet to be seen.

A merger or acquisition between such large media assets would bring together major studios and streaming services, resulting in several roles being duplicated. Especially in corporate departments like Human Resources and Finance, the combined entity could reduce the number of people, thereby cutting costs further, which could lead to thousands of employees losing their jobs. Read on to know more.

This is how Paramount & Warner Bros. Discovery's merger could put thousands of jobs at risk

When two large media companies merge, cost savings and redundancies are common. Like WBD's internal memo reveals, it will lay off about 10% of its motion picture group ahead of the split. Similarly, Paramount, before the Skydance deal, announced plans to cut 15% of its US workforce, which amounts to approximately 2,000 jobs, to reduce costs. Variety analyzed the potential outcome this time, and the report suggests that this merger could lead to massive layoffs.

David Ellison's team is reportedly aiming to cut 2,000 US jobs by late October, with additional layoffs planned internationally. At the same time, Warner Bros. and Paramount+ will still have roughly 50,000 employees post-layoffs, with many in duplicate corporate and creative roles. Because Paramount is acquiring WBD, employees in the acquired platform are at a higher risk of losing their jobs. Moreover, cost synergies demanded by shareholders or investors to justify mergers sometimes lead to substantial staff reductions.

This is how the merger could impact streaming and TV network services

WBD has around 125.7 million subscribers, and Paramount has 77.7 million subscribers; combined, they would total over 200 million, coming close to Netflix and surpassing Disney+. Therefore, a merger would enable the new entity to combine HBO's prestige edge, having created some amazing shows like The Sopranos and Succession, with Paramount's mass appeal franchises and advertising structure.

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WBD’s Linear Assets include CNN, TNT, TLC, Discovery Channel, Adult Swim, among others, while Paramount's include CBS News, CBS, CBS Sports, MTV, BET, and others. Together, they can form a comprehensive cable and broadcast portfolio that encompasses news, sports, lifestyle, and entertainment, all under one umbrella. However, they also overlap in segments like news and sports, which could mean more job cuts and brand rationalization.

The most journalistically sensitive aspect of this merger would be combining CNN by WBD and CBS News by Paramount, as both come with their own legacy institutions and distinct editorial ethics and cultures. If they are merged, it will raise some crucial questions. Would Weiss’s editorial philosophy reshape CNN’s traditionally global, liberal-leaning coverage? Or how would these merged companies manage potential conflicts over what needs to be covered, or the overall tone of the channel, along with journalistic independence? How free will the reporters be of this corporate decision, and to what extent will it affect the selection of news?

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