Paramount Skydance initiated a significant round of layoffs, impacting over 1,000 employees initially with plans for more, totaling about 10% of its workforce. CEO David Ellison cited a restructuring to align with new priorities following the controversial merger greenlit by the Trump administration. The company, now worth approximately $18 billion, owns major media properties like CBS and Nickelodeon. Amid these cuts, Ellison is pursuing a deal with Warner Bros. Discovery while also shaping the company’s editorial direction to focus on “American storytelling.”
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Warner Bros. Discovery will split into two separate publicly traded companies by mid-2026: “Streaming & Studios,” led by David Zaslav, and “Global Networks,” led by Gunnar Wiedenfels. This restructuring aims to enhance strategic flexibility and capitalize on the growth of HBO Max while maintaining profitable global networks. The decision follows investor pressure and industry shifts, with the split intended to unlock the full potential of each business. Debt reduction, a significant factor in the decision, will primarily affect the “Global Networks” entity.
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Despite reporting strong financial results and an optimistic outlook, Microsoft announced Tuesday that it will lay off 3% of its global workforce, impacting thousands of employees. This represents the company’s largest layoff since the 10,000 job cuts in 2023 and is distinct from previous performance-based reductions. The cuts are attributed to necessary organizational restructuring for navigating the competitive market. The company cited a need to “best position the company for success in a dynamic marketplace.”
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To streamline operations and improve efficiency, Starbucks is eliminating 1,100 corporate positions globally, alongside several hundred unfilled roles. This restructuring, announced by new CEO Brian Niccol, aims to reduce complexity and improve accountability within the company’s corporate structure. The layoffs do not affect Starbucks’ store-level baristas. This action follows similar workforce reductions at other large companies and comes as Starbucks seeks to revitalize sales and enhance customer experience.
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Honeywell, a U.S. industrial conglomerate, will separate into three independent companies: automation, aerospace, and advanced materials. This restructuring, driven partly by shareholder pressure from Elliott Investment Management, aims to increase agility and unlock shareholder value for each specialized entity. The separations are expected to be completed by the end of 2026 or early 2027, following a trend of other conglomerates simplifying their structures to improve competitiveness. This follows similar moves by General Electric and Alcoa, reflecting a shift away from large, diversified corporations.
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John Q. Hosedrinker