Paramount Skydance will begin a major round of layoffs with about 1,000 job cuts on Wednesday, a source familiar with the matter told Reuters on Monday.

The job cuts, which follow the $8.4 billion merger between Skydance Media and Paramount Global, would impact roughly 5% of Paramount’s employees based on its workforce prior to the completion of the deal.

As of December 2024, Paramount had nearly 18,600 full- and part-time employees, and 3,500 project-based staff.

The move comes after Reuters reported Warner Bros Discovery’s board rejected a nearly $60 billion offer from Paramount Skydance, with analysts still pinning the David Ellison-led firm as the bidder most likely to succeed.

Bloomberg first reported details of the layoffs earlier on Monday.

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(Reporting by Juby Babu in Mexico City and Arsheeya Bajwa; Editing by Anil D’Silva)