Imagine being told your job now requires a full five days back in the office after years of hybrid or remote flexibility. For roughly 600 employees at the newly merged Paramount Skydance, that choice meant packing up their desks for good, opting for a severance package rather than complying with CEO David Ellison's stringent mandate.
TL;DR
- About 600 Paramount Skydance employees chose to take severance packages instead of returning to the office full-time.
- This decision cost the company $185 million, amidst broader layoffs and strategic divestitures aimed at cutting costs.
- The media giant is pushing for $3 billion in total cost savings, reorganizing its structure, and increasing Paramount+ subscription prices.
This significant exodus, revealed in recent company filings, highlights a pivotal moment for the entertainment behemoth formed by Skydance Media's $8 billion takeover of Paramount Global. Completed in August 2025, this merger wasn't just a corporate handshake; it was a foundational reset, with new leadership making tough calls to "unlock Paramount's full potential" in a rapidly changing media landscape.
The company informed employees in early September 2025 that all staff members would be expected to work in the office five days a week, starting January 5, 2026. Those who didn't want to comply with this directive were offered the option to seek a voluntary buyout, which became available on September 15, 2025. This offer was extended to employees at the VP level and below in Paramount Skydance's Los Angeles and New York offices. Source: [Variety, "About 600 Paramount Skydance Employees Took Severance Packages Rather Than Comply With Five-Day-per-Week Return To Office Mandate," November 11, 2025].
Understanding David Ellison's Vision for In-Person Collaboration
At the helm of the newly formed entity is CEO David Ellison, son of Oracle CEO Larry Ellison. He stepped into the spotlight promising to restore Paramount's "prowess" in the media world, particularly as it navigates criticisms and a challenging post-pandemic environment. His vision is clear: success hinges on a robust, in-person culture.
Ellison articulated his firm stance in a company-wide memo, emphasizing the crucial role of physical presence in fostering innovation and strengthening company culture. "I believe that in-person collaboration is absolutely vital to building and strengthening our culture and driving the success of our business," Ellison wrote, as reported by Fox News. He further underscored his point by stating, "As I said during our town hall, some of the most formative moments of my life happened in rooms where I was a fly on the wall, listening and learning. I've never seen that happen on Zoom." Source: [Fortune, "600 Paramount Skydance employees quit instead of returning to the office, and it cost the company $185 million, filings show," November 11, 2025].
This perspective reflects a broader industry trend, with other major media and tech companies like NBCUniversal, Amazon, and Meta similarly recalling employees to the office, albeit with varying degrees of flexibility. For Ellison, it's a calculated move to inject new energy and coherence into an organization that, prior to the merger, endured years of instability, mismanagement, and leadership shake-ups, even tapping three co-CEOs at one point. This intense focus on in-person work is central to his strategy for a "new path forward."
"I believe that in-person collaboration is absolutely vital to building and strengthening our culture and driving the success of our business... I've never seen that happen on Zoom." — David Ellison, CEO of Paramount SkydanceThe Steep Price of Employee Flexibility and Broader Workforce Streamlining
The decision by 600 employees to take voluntary buyouts didn't come cheap for Paramount Skydance. The company disclosed that these severance packages cost a substantial $185 million, categorized as "restructuring charges" in its regulatory filings. Source: [Business Insider, "600 Paramount Skydance employees quit instead of returning to the office, and it cost the company $185 million," November 11, 2025]. This is just one component of a larger anticipated $1.7 billion in total restructuring expenses that Paramount expects to incur.
However, the buyouts represent only a fraction of a much larger organizational transformation. The company, which boasted approximately 18,600 workers at the end of 2024, is undergoing a sweeping workforce reduction. In late October 2025, about 1,000 employees were laid off, primarily aimed at cutting redundancies and streamlining operations in the wake of the merger. Source: [Reel 360, "“Merciless”: Inside Paramount Global’s massive Layoffs," November 7, 2025].
An additional 1,000 layoffs are still expected to follow this initial wave, bringing the total reduction to roughly 10% of the company's workforce. Beyond these direct job cuts, Paramount Skydance is also in the process of divesting from "non-core" international businesses. This includes the sale of Televisión Federal in Argentina and Chilevision in Chile, a process projected to conclude in the first quarter of 2026. These divestitures alone are anticipated to reduce the global workforce by another 1,600 employees. Source: [Deadline, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," November 10, 2025].
Ambitious Financial Targets and Strategic Reorganization Initiatives
These extensive workforce adjustments and divestitures are all part of an ambitious financial strategy to boost efficiency and long-term profitability. Paramount Skydance has significantly increased its expected post-merger cost-savings target from an initial $2 billion to an impressive $3 billion. Notably, approximately two-thirds of these projected savings are attributed to non-labor costs, indicating a comprehensive approach beyond just headcount reductions. Source: [WebProNews, "Paramount’s RTO Reckoning: 600 Exit Via Severance Amid Merger Overhaul," November 10, 2025].
The company is also undergoing a fundamental reorganization into three core business units: Studios, DTC (Direct-to-Consumer), and TV Media. This new structure is designed to flatten leadership layers, enhance agility, and break down traditional silos, ultimately allowing for faster, more effective decision-making. About one-fourth of senior VPs and higher were among those terminated as part of these efforts, with the goal of "streamlining decision-making and reducing the friction that can prevent great ideas from advancing." Source: [Variety, "About 600 Paramount Skydance Employees Took Severance Packages Rather Than Comply With Five-Day-per-Week Return to Office Mandate," November 11, 2025].
While cost-cutting and efficiency are paramount, the company also plans to strategically reinvest a portion of these generated savings into growth areas. This includes incremental programming investments exceeding $1.5 billion in 2026. These funds are earmarked for strengthening Paramount+ Originals, expanding third-party catalog licensing, and ramping up their film slate, which notably includes securing streaming rights for the Ultimate Fighting Championship (UFC). This demonstrates a dual strategy of aggressive cost reduction coupled with bold investments in future-facing content and platforms. Source: [Deadline, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," November 10, 2025].
The Human Element: Employee Sentiment and Broader Industry Trends
The pivot to a five-day in-office mandate and the subsequent waves of layoffs have, understandably, generated a spectrum of reactions within the company and the broader industry. For many, RTO mandates like Paramount's can feel like a "back-door layoff" strategy. This is where companies implement strict in-person requirements, expecting a percentage of employees to voluntarily leave, thereby reducing headcount without direct termination. A 2024 BambooHR survey found that roughly 25% of C-suite executives hoped for voluntary employee turnover as a result of implementing an RTO policy, with 20% of HR professionals admitting their mandates were intentionally meant to reduce staff. Source: [Fortune, "600 Paramount Skydance employees quit instead of returning to the office, and it cost the company $185 million, filings show," November 11, 2025].
Internally, some employees have described the layoff process as "merciless," with one executive bluntly stating there was "a new way of doing business – they didn't show a lot of respect." A longtime CBS News employee shared their devastation, noting, "I've lost a lot of friends. A lot of really great writers and journalists have lost their jobs." One report even suggested that women were disproportionately affected among television executives dismissed, with 11 out of 14 impacted. However, a source close to the company denied any gender or political bias, insisting that decisions were based purely on restructuring needs. Source: [Reel 360, "“Merciless”: Inside Paramount Global’s massive Layoffs," November 7, 2025].
This situation plays out against a backdrop of a struggling entertainment industry post-COVID-19, which has seen over 270,000 workers lose jobs. The job market in entertainment hasn't fully recovered, making the stakes incredibly high for both companies and employees. This transition from a "low-hire, low-fire" to a "low-hire, more-fire" labor market, especially as companies invest heavily in AI for productivity, means continued uncertainty for many. Source: [Fortune, "600 Paramount Skydance employees quit instead of returning to the office, and it cost the company $185 million, filings show," November 11, 2025].
For example, imagine Alex, a visual effects artist who relocated to a more affordable city during the pandemic, relying on remote work to stay connected to Hollywood projects. The five-day RTO mandate from Paramount Skydance, a company she highly respected, placed her in a difficult position. Uprooting her family again was not an option, making the severance package a bittersweet, if necessary, exit. This real-world scenario highlights the personal dilemmas employees face when corporate strategies shift dramatically.
What This Means for Viewers and Paramount+ Subscribers
For those of us who enjoy Paramount's vast portfolio—including Paramount Pictures, Paramount Television Studios, the CBS Television Network, CBS Studios, CBS News, CBS Sports, Pluto TV, Nickelodeon, MTV, BET, Comedy Central, Showtime, and Skydance's Animation, Film, Television, Interactive/Games, and Sports divisions—these internal shifts will eventually ripple outwards. Source: [Variety, "About 600 Paramount Skydance Employees Took Severance Packages Rather Than Comply With Five-Day-per-Week Return to Office Mandate," November 11, 2025]. The company is actively investing in its streaming future, acquiring new content rights like UFC and bolstering its original programming slate for Paramount+, signaling a strong push in the DTC space.
However, subscribers should also note that Paramount+ is seeing price increases soon. Starting January 15, 2026, the ad-supported Paramount+ Essential plan will go up by $1 to $8.99 per month. Similarly, the no-ads Paramount+ Premium plan will also rise by $1 to $13.99 per month. Source: [Bassyonniago, "Paramount Sees 600 Employees Opt for Buyout Amid Office Return Policy," November 12, 2025]. This move aims to maximize margins and drive strong free cash flow generation, directly impacting consumer pockets.
These changes are not isolated to Paramount. The broader entertainment industry is undergoing a significant transformation, moving heavily towards streaming platforms like Disney+, Netflix, and Hulu, as consumer habits evolve. This fierce competition, with tech giants like Amazon and Apple also investing heavily, means that while the landscape is uncertain, companies like Paramount Skydance are making calculated, if sometimes painful, moves to secure their position in the "new frontier" of entertainment. Source: [Carlmont High School, "Layoffs at Paramount signal changes in entertainment," November 6, 2025].
Practical Takeaways from Paramount Skydance's Restructuring
- The media industry's rapid pivot to streaming continues to drive massive corporate restructuring and significant workforce changes.
- Companies are increasingly prioritizing in-person collaboration, forcing employees to make tough choices about workplace flexibility.
- Paramount Skydance is undergoing an aggressive overhaul to streamline operations and achieve ambitious cost-saving targets post-merger.
- Expect to see continued, strategic investment in Paramount+'s content library and exclusive offerings, alongside higher subscription prices in early 2026.
- These profound internal corporate shifts underscore the ongoing, dynamic evolution of how entertainment is created, distributed, and ultimately consumed.
Sources
- Variety, "About 600 Paramount Skydance Employees Took Severance Packages Rather Than Comply With Five-Day-per-Week Return to Office Mandate," November 11, 2025.
- Fortune, "600 Paramount Skydance employees quit instead of returning to the office, and it cost the company $185 million, filings show," November 11, 2025.
- Business Insider, "600 Paramount Skydance employees quit instead of returning to the office, and it cost the company $185 million," November 11, 2025.
- Deadline, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," November 10, 2025.
- WebProNews, "Paramount’s RTO Reckoning: 600 Exit Via Severance Amid Merger Overhaul," November 10, 2025.
- Bassyonniago, "Paramount Sees 600 Employees Opt for Buyout Amid Office Return Policy," November 12, 2025.
- LiveMint, "No work-from-home: 600 employees quit at US-based firm, opt for CEO’s buyout offer," November 12, 2025.
- Reel 360, "“Merciless”: Inside Paramount Global’s massive Layoffs," November 7, 2025.
- Carlmont High School, "Layoffs at Paramount signal changes in entertainment," November 6, 2025.