Paramount and Warner Bros. Deal Clears State AG Hurdle, Employees Brace for Layoffs

The unexpected settlement with 12 state attorneys general has given the green light to the Paramount-Warner Bros. Discovery merger, leaving staff on both sides stunned. David Ellison emphasized that Paramount will remain headquartered in California, calming some concerns about a possible relocation.

Yet employees expressed disappointment over the limited concessions, noting the absence of any focus on TV assets despite television comprising the bulk of the business. The agreement does not require divestiture of low-performing channels, only hinting at future cuts, and it mandates a $47.5 million fund for training displaced workers over five years. A separate deal with the Writers Guild of America bars layoffs at one outlet for five years. With the merger slated to close within weeks, executives warn that the first round of layoffs will likely occur in the fourth quarter, followed by additional reductions later in the year.