Skydance is pulling back the curtain on how it plans to achieve at least $6 billion in cost savings in the next three years.
"By combining two global streaming services, two film and TV studio groups, two television portfolios, and overlapping corporate functions, we can reduce duplicative spend across an expense base of more than $50 billion," the company wrote in a letter to shareholders Monday as part of Paramount Skydance's third-quarter earnings release.
Skydance, the newly formed combination of Paramount Skydance and Warner Bros. Discovery, said it projects at least $2.2 billion in cost reductions from eliminating "redundant back-office and corporate functions," including eliminating management layers and ramping the use of artificial intelligence. Those savings also account for "rationalizing" its office footprint.
Skydance expects at least $1 billion in savings from streamlining marketing and promotional spending. And around $1.4 billion in savings will come from unifying its streaming businesses and broadcast architecture and integrating back-end technology.
A final $1.4 billion in savings will be tied to "optimizing third-party spend," eliminating overlapping expenses, and consolidating purchasing decisions to one centralized group, Skydance said.