Update: This story was originally published on July 21 and updated on July 24 after news that Paramount agreed to delay closing its WBD deal until the antitrust cases are decided.

Workers at Paramount Skydance are debating whether the proposed combination with Warner Bros. Discovery would trigger staff reductions or instead protect their roles by strengthening the business.

"I'm definitely worried about impending layoffs post-merger," a Paramount research staffer said. "But I'm worried about the company as a whole if it doesn't go through."

Paramount's $110 billion transaction with WBD has been halted following a temporary court order tied to a lawsuit filed by 12 states. David Ellison's firm consented on Friday to suspend the combination until five days after the antitrust rulings or until June 1, 2027, whichever arrives first.

Twelve Paramount employees Business Insider interviewed following the court order expressed divided views on how the transaction would affect their positions and the broader sector.

Some Paramount team members worry their roles may become redundant once their groups combine with similar units at WBD, while others fret over the firm's financial stability should the agreement stall or fail.

Ellison's company would owe WBD a $7 billion breakup fee if the transaction collapses, and has also committed to a daily ticking fee of roughly $7 million starting after September 30 if the merger remains incomplete. The possible consequences of those penalties led several staffers to favor completing the deal.

"I see Paramount in the same light as Spirit Airlines," one streaming staffer said. "Regulators didn't let JetBlue and Spirit Airlines merge. Now Spirit is bankrupt, and JetBlue is struggling."

Two WBD employees told Business Insider they feel anxious about the deal's effects on the media sector, yet noted it would deliver personal financial gains through stock grants.

"Best case for me personally is the deal goes through, I get laid off, and get my 15 months of severance," one veteran WBD staffer added. "Then, I just need to find something for a couple years before I retire."

'Tired of mergers and chaos'

Paramount has stated it must combine with WBD to create "a stronger competitor against dominant streaming and technology platforms," like Netflix and YouTube. Ellison's company maintains the mega-merger will enable greater film and TV output than either firm could achieve alone.

Many in Hollywood remain doubtful. Leading actors and directors have voiced opposition to the Paramount-WBD transaction, warning it would yield "fewer opportunities for creators" and "fewer jobs across the production ecosystem." The Writers Guild of America has launched a lawsuit against Paramount, claiming the arrangement breaches antitrust rules.

The Paramount employees against the deal mainly voiced worries about reduced competition in the media landscape.

"I'm indifferent to sticking around because I'm so burned out, but I would hate it if others lost a career they were passionate about," a Paramount streaming staffer said.

Another streaming manager opposing the deal said they are "tired of mergers and chaos." Paramount combined with Skydance last August, six years after Viacom and CBS joined forces.

"My future in this deal is uncertain, I feel," said a third streaming staffer who's against the merger.

'The best shot at keeping my job long term'

The Paramount staffers backing the deal offered a straightforward reason: they view the merger as the strongest path for the company and their own careers.

"While I may have personal opinions about the negative effect this could have on the industry, I think the merger gives me the best shot at keeping my job long term," the Paramount research staffer said. "That's more important to me at the end of the day."

A high-level ad employee said this deal would make Paramount more powerful and give the company "more premium supply, which helps the sales story."

A senior streaming employee said that they support the deal, adding that they "don't see why it wouldn't" get approved by regulators.

WBD had planned to sell its studio and streaming business to Netflix before Paramount stepped in, which this high-level streaming staffer said "would have created a much larger consolidation of two streaming powerhouses" while leaving WBD's traditional TV unit "flailing and nobody interested in it."

The states suing Paramount argue that this deal would harm competition by giving the combined company undue influence over cable distributors, as well as leverage over theatrical distribution for both wide-release movies and big-budget blockbusters.

A super-charged Paramount-WBD "is ultimately better for the consumer," the high-level Paramount streaming leader said, contending that it "creates a larger, more competitive catalog of content to compete against Disney and Netflix." Consolidating TV assets will help Paramount cut costs, they added, though they understood worries about CNN's future, given how CBS News has changed under Ellison.