....but he’s still worth £250m so he'll get by somehow

Hollywood megastar Tom Cruise has reportedly taken a multimillion pay cut after his film development contract expired.

The 44-year old actor and his business partner Paula Wagner will no longer receive a budget of up to £4 million a year from Paramount Pictures to cover overheads and develop films through their company Cruise/Wagner Productions.

According to the Los Angeles Times newspaper, new Paramount head Brad Grey, who took over last year, told Tom’s company that the studio was not in a position to renew the same contract after it expired last month.

Paramount funded Tom’s latest movie Mission Impossible III, which grossed over £200 million. But due to his expected profit margin, the studios will only just break even.

The actor’s lawyer Bertram Fields says: ‘We received an offer and we are digesting it. We will sit and talk about it. It is not the case that they said this is a take-it-or-leave-it offer. I don’t think my friends at Paramount would ever talk that way.’

The pay cut comes as many Hollywood studios try to reduce costs in the face of uncertain box office returns.

Paramount spokeswoman Janet Hill says: ‘We have the utmost respect for
Tom Cruise and Cruise/Wagner Productions. We are currently in discussions to renew their deal.’