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Hollywood’s consolidation wave has delivered another jolt to the media workforce, raising concerns about layoffs, culture and leadership credibility as Paramount and Warner Bros. finally move toward a merger.
Following the end of the tug of war for Warner between Netflix and Paramount - and assuming it is completed - the immediate HR concern inside the combined organization will not be strategy decks or shareholder logic but, of course, people.
The prospect of integration between two giant media organizations arrives after a decade in which the legacy entertainment sector has contracted under pressure from new streaming services and social media platforms.
After a series of ownership shifts across the industry, Skydance’s acquisition of Paramount set the stage for a larger move.
When Skydance absorbed Paramount last year, billionaire CEO David Ellison, son of the world’s sixth-richest man Larry, set his sights on Warner Bros. and triggered a bidding war for the film and TV giant.
After Paramount emerged as the winner, Warner leadership attempted to reassure staff through an internal address from Warner Bros. Discovery CEO David Zaslav.
On an all-hands Zoom call, Zaslav tried to help employees get past any trauma and uncertainty from the protracted merger talks.
According to reports from industry title Deadline, Zaslav attempted to reassure staff, but his performance was later described as “cringeworthy” and “grating”. He did not take questions, but instead reminded them that they are “the envy of everyone in this business.”
“If Warner Bros. is going to survive, then we needed to be bigger, and we needed to be global,” he said. “Some of these companies are getting so big that they can just run us over.”
Deadline reported that employees called Zaslav, who was accompanied by Chief Revenue and Strategy Officer Bruce Campbell and CFO Gunnar Wiedenfels, “tenuous and timid”, adding “You can tell that there was a level of sheepishness trying to sell that bigger is better.”
Staff were reportedly left “shocked” with some worried about what would become of CNN under Trump favorite Ellison’s control. Zaslav attempted to ease those fears by telling employees the cable news giant would have “the opportunity to work with CBS News.”
“People could not believe they took no questions from employees. Amazing how out of touch they are,” one employee said.
Layoff fears shape employee reaction
For employees inside both companies, the deal raises the familiar questions that accompany major corporate mergers, around workforce ‘resizing’ and job security.
The entertainment industry has recent precedent for the fallout that can follow such a deal. After Disney absorbed 20th Century Fox, output at Fox decreased by 46%. Paramount itself dismissed 2,000 workers after the Skydance merger.
Large acquisitions often place HR leaders in the difficult position of balancing strategic integration with employee morale. When job fears become heightened, internal communication becomes vital. In this case, David Zaslav’s attempts to reassure staff seem to have fallen flat.
For HR executives looking in, the episode underlines the central challenge of merger integration to align business strategy with workforce confidence.
Employee concerns about layoffs, cultural identity and leadership transparency will likely dominate the early phases. In large mergers, workforce engagement can shape the pace and success of organizational change as much as financial strategy.
The Paramount–Warner deal may ultimately reshape the competitive structure of Hollywood but, in the short term, the immediate priority for leadership teams will be to stabilize employee confidence while managing the difficult task of combining two enormous workforces.
HR advice around mergers and acquisitions
HR and business leaders advise focusing on cultural understanding, transparency, and learning.
Tracey Felter, CHRO at SaaS tech firm, Aeris, comments: “HR is often the unsung hero of successful M&A transactions,” and points to three priorities for successful integration.
“ Understand the culture you’re inheriting. Talent audits, leadership assessments, survey results, and alignment workshops uncover potential friction before it happens.
“Employees crave transparency (I cannot state this enough!) during times of uncertainty. Partnering with leadership to create a detailed communication strategy is key to reducing anxiety and retaining talent. There is no such thing as too much communication
“Integration isn’t just about processes - it’s about people. I prioritize embedding shared values and building trust across teams to ensure long-term success.
Elizabeth Kaske, EY Parthenon Global and Americas Mergers & Acquisitions Leader, shared: “One of the most valuable lessons I’ve learned in the journey to achieving M&A goals is that it hinges on understanding the people behind the deals. Every integration brings together different cultures, priorities, and ways of working, and those human factors can make or break the outcome.
“I’ve seen how leaders who take the time to listen closely and ask thoughtful questions uncover hidden challenges like misaligned incentives or communication gaps early on. Addressing these head-on creates trust and keeps teams aligned throughout the integration process.
“The real work starts after the deal closes, when leaders stay connected to employee concerns and evolving priorities. This ongoing focus on culture and engagement is what empowers a deal to become a lasting partnership.”
Missteps along the way are inevitable but Wilm Langenbach, CEO of commercial insurance specialist, HDI International, advises leaning into them and using them as an opportunity to learn.
“A healthy error culture and open feedback loops are essential,” he said. “When moving fast in such a complex integration process, surprises and mistakes will happen. It is thus key to identify and address them quickly and to learn from them.
“Culture is not a soft factor – it’s often the hardest and most decisive element. Our teams made it a priority to establish a common culture that fits both companies.”
