Gerry Cardinale is pushing back against expectations that Paramount’s planned merger with Warner Bros. Discovery will produce sweeping layoffs, arguing that most of the transaction’s projected $6 billion in cost savings will come from areas other than labor.

The Paramount board member and RedBird Capital founder, who has been a principal architect of the deal, addressed the cost-cutting strategy Thursday during an appearance at the Bloomberg Screentime conference. The $110 billion merger is due to close Tuesday after a year of negotiations involving multiple suitors and a lengthy legal battle.

Concern over job losses has followed the consolidation plan, particularly within a Hollywood community already affected by Covid, labor unrest and a broader industry contraction. Thousands of layoffs have been anticipated, while independent analyses and the history of previous mergers have reinforced fears that workers could bear a large share of the cuts.

Cardinale, however, called the assumption that a $6 billion savings target automatically translates into mass firings “completely antiquated.”

“If you look at what we have in front of us, most the majority of those cost synergies are related to non-labor spend,” he said.

Technology, real estate and marketing in focus

One significant part of the strategy will involve combining the systems used across the companies’ direct-to-consumer businesses. Cardinale cited work already completed involving Paramount+, Pluto and BET+, adding that the company intends to apply a similar approach when HBO is brought into the combined operation.

Real estate is another potential source of savings. Cardinale claimed that when Paramount was bought in 2025, the company possessed real estate that some people within Paramount did not know it had.

He also pointed to the absence of an enterprise resource planning system, saying the current structure does not provide a clear view of spending across every division. Marketing expenditures will be another target for optimization.

Cardinale did not rule out employment-related reductions entirely. He acknowledged that a challenged industry will face some “labor-related cost rationalization,” but maintained that workforce cuts are not the primary force behind the $6 billion figure.

Cardinale makes his case for David Ellison

The discussion also turned to CEO David Ellison and questions about how the 43-year-old has become a leading Hollywood figure despite having a relatively short record of running major companies reflected on his LinkedIn page.

Cardinale argued that Ellison’s ability to attract loyal colleagues demonstrates qualities that cannot simply be attributed to his family name. Ellison’s father, Larry Ellison, is one of the world’s richest men, a connection that has fueled perceptions that the younger Ellison’s rise is rooted in nepotism.

“People are incredibly loyal to him,” Cardinale said. “You can’t fake that.”

He described Ellison as humble, genuine and deeply invested in the industry, including its talent and content creators. Cardinale also said he believes Ellison intends to devote the rest of his professional career to the business.

Ellison’s leadership was central to Cardinale’s decision to commit both his firm and his own career to the Warner Bros. Discovery transaction, he said. That confidence is tied to a broader belief that Hollywood companies must adopt more of a technology-company mindset if they are to compete with Silicon Valley.

Cardinale used Ben Affleck as an example of Hollywood talent pursuing that path. Affleck, who has worked with RedBird on multiple ventures, founded the artificial intelligence company Interpositive and later sold it to Netflix.

While expressing respect for Silicon Valley businesses, Cardinale drew a distinction between distribution and intellectual property. His partnership with Ellison, he said, is intended to create a more level competitive field for Hollywood.

What Happens Next?

The Paramount-Warner Bros. Discovery merger is scheduled to close Tuesday. After that, the company will face the task of pursuing its promised $6 billion in savings through the technology, real estate, spending oversight and marketing changes Cardinale outlined.

His comments offer reassurance that labor is not expected to provide most of those savings, but they do not eliminate the possibility of job reductions as the two businesses are brought together.