UPDATE:
Gail Berman walked the plank at Paramount with two years left on her contract. Claudia Eller at the LA Times points out that this is another loss for Brad Grey, while Nikki Finke sees another woman in power become a woman in peril: Berman's not even getting the golden handshake of a production deal.

Earlier:

Gail Berman is basically out the Paramount gates, according to the LA Times. Brad Grey had installed her in March 2005 but she never really fit in, as Claudia Eller and Meg James write:

Shortly after joining Paramount, Berman was confronted with published rumors that her job was in jeopardy. Agents and executives complained that Berman was often too tough and impolitic in her dealings with those accustomed to being coddled.

And having Stacey Snider running Dreamworks must have given her a little hint, too.

Paramount isn't issuing any official word.