Skydance Games Cuts Jobs, Scales Back Projects After Studio Merger
Skydance Games confirmed on Monday, November 9, 2026 that it has cut jobs and scaled down some projects, just over a month after Paramount and Warner Bros. merged their game studios into one unit. The company did not say how many roles were affected.
Skydance Games has cut jobs and scaled back some projects, the company confirmed on Monday, November 9, 2026. The Skydance Games layoffs hit just over a month after Paramount and Warner Bros. merged their video game operations.
A Skydance spokesperson did not say how many roles were affected or which projects will shrink. The company's statement said it had made "the difficult decision to scale down some of our projects."
What the company said
"As part of our ongoing efforts to position Skydance Games for long-term growth and success, we are implementing reorganization and operational shifts across a few areas of our business," the spokesperson said. The statement added that the company "stepped back and taken some time to consider where we are investing our efforts."
The spokesperson said the cuts are "not a reflection of the talent, dedication, or creativity of those affected." The company said it is committed to handling the process "with transparency, care and respect" for departing staff.
A merger barely a month old
On October 6, the Skydance-owned Paramount Games Studio was combined with Warner Bros. Games' internal developers. That group includes Avalanche Software, the maker of "Hogwarts Legacy," as well as NetherRealm Studios, Rocksteady Studios, TT Games and the WB Games teams in Montreal and Boston.
The games teams were also folded together with each company's experiences division. The single team now oversees projects based on a long list of properties.
From Paramount, those include "Star Trek," "Mission: Impossible," "SpongeBob SquarePants," "South Park," "Avatar: The Last Airbender" and "The Godfather." Warner Bros. contributes "Harry Potter," DC Universe, "Mortal Kombat," "The Matrix," "Rick and Morty" and "Game of Thrones."
At the time of the combination, Skydance promoted Tony Driscoll to head of the games and experiences unit. Driscoll had been named head of Paramount's newly launched video game studio in June.
Parent company under pressure
The layoffs came the same day Skydance reported third-quarter earnings. The Warner Bros. figures were not included in that report because the merger closed during the fourth quarter, about five weeks earlier.
Skydance co-CEO David Ellison told investors the company faces "headwinds particularly in studios where Warner Bros film has underperformed this year." He said Skydance would apply the same approach it used at Paramount, including "greenlighting more selectively" and driving efficiency through the cost structure.
Skydance chief financial officer Dennis Cinelli said the company expects a $200 million headwind to adjusted EBITDA in the fourth quarter. He tied it to the continued underperformance of the Warner Bros. film slate. Ellison said the company is still targeting $6 billion in synergies from the merger.
