Skydance Cuts Games Division Jobs After $111bn Paramount-WBD Merger

Skydance has laid off an undisclosed number of staff in its games division, weeks after the $111 billion merger between Paramount and Warner Bros. Discovery. The company says it is scaling down some projects as part of a broader reorganisation, and roughly 30 positions may be affected.

What the company said

A company spokesperson said Skydance is "implementing reorganisation and operational shifts across a few areas of [its] business" following the merger, which closed last month.

"We have stepped back and taken some time to consider where we are investing our efforts and have made the difficult decision to scale down some of our projects," the spokesperson said. "As a result, there are roles impacted."

The spokesperson added: "This is not a reflection of the talent, dedication, or creativity of those affected, and we are grateful for their contributions. We are committed to approaching the process with transparency, care, and respect for those who are leaving the company."

Who is affected

One of the departures is associate design director David Ballard, who announced his exit on LinkedIn. "My chapter with Skydance and Paramount came to an end today with a layoff," he wrote. "I'm super grateful for the opportunities I was given over the past almost 4.5 years. A shipped title, several awards, two promotions, an incredible team, and an unbelievable amount of creativity and collaboration."

The company has not confirmed which studios or projects the cuts touch.

A warning that came true

Skydance CEO David Ellison had flagged this kind of outcome before the deal closed. "Bringing together two companies of this size and complexity will require difficult decisions," he said. "There will be changes, and there will be impacts. I'm not going to pretend otherwise."

A games unit still taking shape

The layoffs land on a division that has been reorganised twice in a few months. Paramount Games Studio was established this summer under EVP and head of games Dan Brigg. It combined Paramount's IP with Skydance Interactive and Skydance New Media.

After the acquisition, that studio was merged with WB Games into a single unit led by Tony Driscoll. The cuts are the first visible sign of how the combined group intends to prioritise its slate, with some projects now being scaled down.

Neither the company nor Ballard has named the affected projects, and the spokesperson did not give an exact headcount.