Ynon Kreiz, the new co-chief executive of Skydance, said a planned $6 billion in cost savings will come from “technology, marketing consolidation, real estate optimization, and some labor. Although labor is not the majority of the savings.”
But “we’ve been public” that synergies will involve some workforce reduction, he said during a Q&A on CNBC this morning alongside Skydance chairman and CEO David Ellison.
“When it comes to making those decisions, of course we’re thinking of our people. We’re going to do it in the right way, respectfully, transparently, and communicate our plans. This will be part of the plan. This is part of the plan. Will be part of the process,” he said.
The comments echo those Ellison made yesterday at a town hall meeting of global staffers.
“It’s important also to say this is not about cost reduction. This is about reengineering how we work. This is about reinventing the business model. So it’s not just synergies and reducing costs; it’s also improving how we perform. And we’re looking to build a high-performing company, leveraging technology, leveraging capabilities [to] build something that will stand out for years to come.”
The merger of Paramount and Warner Bros. Discovery closed Tuesday, with the combined companies now called Skydance. Executives are targeting the $6 billion in cost savings by the end of 2028, but the co-CEOs indicated in the interview today that they think the number could be greater. They noted that the earlier Paramount-Skydance merger “over delivered” on synergies, projecting $2 billion and hitting $2.7 billion.
Kreiz, a seasoned executive, joined Skydance from Mattel where he announced a 25% workforce reduction shortly after coming on in 2018 as profits plunged amid the liquidation and bankruptcy of giant retailer Toys ‘R’ Us. He will oversee the day-to-day operations while Ellison focuses on creative and strategy.
“I feel like if I’m there [at Skydance], I feel like I’m happy to see him,” CNBC host David Faber joked, gesturing at Ellison. “I’m not so sure if I’m happy to see you coming down the hall.”
“We’re in it together,” the co-CEOs said in unision.
