Skydance Targets Office Cuts in $6 Billion Savings Plan

Hollywood's newest giant wants fewer keys on its ring. Skydance, which closed its purchase of Warner Bros. Discovery on Oct. 6, told shareholders on Nov. 9 it is targeting at least $6 billion in yearly run-rate savings within three years, and office space is on the list ^[1].

"There's also a very meaningful opportunity to rationalize our office footprint," co-CEO Ynon Kreiz said on the earnings call, Bisnow reports ^[2]. The plan is to shift staff from rented offices into buildings it already owns in four cities: Los Angeles, New York, Atlanta and London ^[2].

Where the savings come from

• Corporate overhead, real estate and facilities ran about $8 billion in 2026, and the target is at least $2.2 billion in cuts, with production lots kept ^[1].
• Kreiz said the company has five sites in New York and seven in Los Angeles, plus several in Atlanta and London ^[2].
• In New York, Paramount leases 1.6 million square feet at 1515 Broadway through 2031, per CoStar data cited by Bisnow ^[2].
• Paramount also holds 797K square feet at Columbia Square in Hollywood through 2028 ^[2].

But the cuts come with a heavy debt load and a bill of their own. The filing puts gross debt after closing at $87 billion, while Bisnow cites $80 billion ^[1][2]. Skydance also expects one-time costs of roughly $4 billion to reach its savings ^[1].

What it means for you

The exposure sits with landlords. Bisnow names Kilroy Realty, Worthe Real Estate Group and Stockbridge as owners renting space to Skydance units ^[2]. By our math, the $2.2 billion target equals about 27.5% of the $8 billion overhead and facilities bill, so investors in office REITs with big media tenants should watch lease expiration dates, not just occupancy.

Zoom out

Big mergers often end with fewer offices, and Skydance says it will report milestones as savings land, with 30% expected in year one ^[1].