Paramount's Big Shift: Layoffs, Office Returns, and New Content Push

Imagine being told you have to choose: return to the office five days a week, or leave with a severance package. That's the stark choice 600 Paramount employees in Los Angeles and New York faced recently, and they chose to walk away.

This isn't just about a change of scenery; it's a small but significant piece of a much larger, "merciless" restructuring happening at Paramount Global. New Chairman and CEO David Ellison is aggressively reshaping the company, making bold moves that impact everything from its workforce to your favorite streaming shows.

TL;DR

• Approximately 600 Paramount employees opted for severance packages rather than comply with a strict five-day-a-week return-to-office mandate in LA and New York.
• These voluntary departures add to ongoing layoffs, with 1,000 already cut and another 1,600 expected, aiming for a total 15% workforce reduction following the $8 billion Skydance merger.
• Paramount is reorganizing into three core units and investing heavily in streaming, new film slates, and major content deals like UFC rights and "South Park," even as Paramount+ subscription prices are set to rise.

A Tough Choice: Return to Office or Take the Exit?

Starting in January 2026, Paramount instituted a strict five-day-a-week return-to-office (RTO) policy for employees at the VP level and below in its Los Angeles and New York offices. It was a firm directive from new leadership, with a clear option for those unwilling or unable to comply: a voluntary severance package. Source: The Wrap, "Paramount Says 600 Employees Took Voluntary Severance Over Return-to-Office Push," November 10, 2025.

The result? Roughly 600 employees chose to take that severance. This mass exodus cost Paramount approximately $185 million in restructuring charges, as revealed in the company's third-quarter shareholder letter. Source: Business Insider, "Paramount Skydance says 600 employees took severance and quit instead of returning to the office," November 10, 2025. This isn't an isolated incident; other media giants like NBCUniversal also offered severance to employees unwilling to return to the office.

For David Ellison, Paramount's Chairman and CEO, the mandate is about fostering a stronger culture and driving success. He told employees that "in-person collaboration is absolutely vital to building and strengthening our culture and driving the success of our business." Source: Business Insider, "Paramount Skydance says 600 employees took severance and quit instead of returning to the office," November 10, 2025. It’s a move reflecting a broader industry trend where companies like AT&T, Amazon, and Meta are also calling their workforces back to physical offices after the pandemic's remote-work surge.

The Wider Restructuring: Thousands More Jobs on the Line

The RTO-related departures are just one piece of a much larger puzzle. Following its $8 billion merger with Skydance Media in August, Paramount Global announced sweeping workforce reductions. The company already laid off 1,000 employees in October, primarily in the U.S. Source: Los Angeles Times, "Paramount lays off 1,000 workers in first round of cuts," October 29, 2025.

And there are more cuts to come. Paramount expects another 1,600 staff reductions in early 2026, tied to the divestiture of "non-core" international businesses like Televisión Federal (Telefe) in Argentina and Chilevisión in Chile. Source: Deadline, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," November 10, 2025. Overall, Ellison and his team are targeting a 15% reduction of the company's approximately 20,000-person workforce.

What About the Folks at CBS News?

The cuts hit CBS News particularly hard, impacting many familiar faces. Award-winning journalists like "CBS Saturday Morning" hosts Michelle Miller and Dana Jacobson, correspondents Nikki Battiste and Janet Shamlian, and foreign correspondent Lisa Ling were among those let go. Nancy Chen confirmed her layoff on Instagram, expressing gratitude for her team. Source: Cole Hediger, "The Most Famous Faces To Get Cut From CBS News Amid Major Network Changes," November 8, 2025.

Beyond individual departures, CBS News also underwent significant structural changes. The "Race and Culture" unit was ended, and bureaus in Johannesburg and South Africa were shuttered. Even streaming extensions like "CBS Morning Plus" and "CBS Evening News Plus" were canceled. Source: Maeve Bidonde, "CBS: New management team orders round of cuts in employees, including Veteran Journalist Lisa Ling," November 7, 2025.

"When we launched the new Paramount in August, we made clear that building a strong, future-focused company would require significant change — including restructuring the organization."

— David Ellison, Chairman and CEO of Paramount Global

The process has been described as "merciless" by some insiders. One executive noted, "They didn't show a lot of respect." There were also reports from Variety that women were disproportionately affected, with 11 of 14 dismissed television executives being women, though a company source denied gender played a role in these decisions. Source: Reel 360, "“Merciless”: Inside Paramount Global’s massive Layoffs," November 7, 2025.

For example, imagine a dedicated producer who has been with CBS News for 15 years, building a career around the "Race and Culture" unit they helped establish. They've poured their heart into stories that matter, only to receive an email explaining their role is being "phased out" due to "evolving priorities." The news feels like a punch, not just to their livelihood but to their sense of purpose, forcing them to re-evaluate their entire professional trajectory in a competitive and shrinking job market.

A Strategic Overhaul for a Leaner, More Agile Future

So, why all the drastic changes? Ellison's vision for Paramount is clear: streamline operations, cut costs, and invest boldly in areas with long-term potential, especially streaming. The company now expects to achieve $3 billion in cost savings, a significant jump from its initial forecast of $2 billion. Source: Deadline, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," November 10, 2025.

To achieve this, Paramount is reorganizing into three core business units: Studios, DTC (Direct-to-Consumer), and TV Media. This structure aims to "flatten our structure and enhance agility," reducing friction and allowing for faster decision-making. Source: Deadline, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," November 10, 2025.

Big Investments Despite the Cuts

It's not all about cuts, though. A portion of the generated savings, Ellison promises, will be reinvested in growth areas like programming, technology, and strategic partnerships. Paramount expects to make incremental programming investments exceeding $1.5 billion in 2026. Source: Deadline, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," November 10, 2025.

These investments include:

• A whopping $7.7 billion for UFC fight rights, boosting Paramount+'s live sports offerings.
• A $1.25 billion deal over five years to keep "South Park" creators Matt Stone and Trey Parker producing content.
• Luring "Stranger Things" creators Matt and Ross Duffer away from Netflix.
• Plans to nearly double film releases from eight to 15 next year.
• Securing a 10-year lease on a film and TV production facility in New Jersey, taking advantage of state tax incentives.

However, not all talent is sticking around. Taylor Sheridan, the prolific creator behind the "Yellowstone" franchise, has made a deal to develop movies and shows for NBCUniversal after executives he worked with at Paramount departed post-merger. This shows a tradeoff: while Paramount gains new talent, it risks losing established relationships in the reshuffle.

What This Means for Paramount+ and Your Wallet

Ellison's focus on streaming and direct-to-consumer is paramount (pun intended!). Paramount+ is a central pillar, and the company plans to increase its subscription fees in 2026. While exact figures weren't disclosed, current plans are $7.99 a month and $12.99 a month. Source: Los Angeles Times, "Paramount sheds another 1,600 workers as David Ellison team digs in," November 10, 2025. This move aims to turn its streaming operations profitable this year.

The company reported that Paramount+ and other streaming services grew by 1.4 million subscribers to a total of 79 million in the third quarter, with streaming revenue up 17%. Source: Los Angeles Times, "Paramount sheds another 1,600 workers as David Ellison team digs in," November 10, 2025. Despite a Q3 net loss of $257 million, Paramount forecasts a total revenue of $30 billion and an adjusted operating income of $3.5 billion for 2026.

One counterpoint to this aggressive investment strategy and price hikes is the fierce competition in the streaming landscape. As business teacher John Rowe notes, "You’re seeing companies like Amazon and Apple all jump into the space. Some companies are going to invest a lot of money, and it’s not going to pay off for them." Source: Dylan Huang, "Layoffs at Paramount signal changes in entertainment," November 6, 2025. This highlights the significant financial risks involved, even with a clear strategy.

Practical Takeaways for Viewers and Industry Watchers

The changes at Paramount aren't just boardroom decisions; they have real-world implications:

• Expect more diverse and premium content on Paramount+. With $1.5 billion earmarked for programming and big deals for UFC, "South Park," and top creators, the streaming service is clearly a priority.
• Prepare for a potential price increase for Paramount+ subscriptions in 2026. The company is pushing for streaming profitability, and this often means passing costs to consumers.
• Keep an eye on Paramount's film slate. They're planning to nearly double their movie output, which could mean more theatrical releases or direct-to-streaming blockbusters.
• The media landscape continues to consolidate. Paramount's pursuit of Warner Bros. Discovery signals a trend of major players looking to merge and become even larger to compete.
• Job security in entertainment remains tenuous. These significant layoffs underscore the industry's ongoing transformation, driven by the shift to streaming and cost-cutting measures.

FAQ: Your Burning Questions About Paramount's Future

What does Paramount's restructuring mean for its streaming service, Paramount+?

Paramount+ is a central focus of the new strategy, with major investments planned for exclusive content, live sports (like UFC), and a boosted film slate. However, it also means subscribers should expect a price increase in 2026 as the company aims for profitability.

Are more layoffs expected at Paramount?

Yes, an additional 1,600 job cuts are anticipated in early 2026, primarily due to the divestiture of international television businesses. These are on top of the 1,000 layoffs in October and the 600 employees who took severance over the return-to-office mandate.

What new content is Paramount investing in?

Paramount is making significant investments in programming, including securing UFC fight rights, a long-term deal for "South Park," attracting top talent like the Duffer Brothers ("Stranger Things"), and nearly doubling its film production output for the coming year.

Will Paramount's subscription prices change?

Yes, Paramount has announced plans to increase Paramount+ subscription fees in 2026. While specific new pricing hasn't been detailed, current plans are priced at $7.99 and $12.99 per month. Sources

• Jill Goldsmith, "Paramount Says 600 Staffers Took Buyouts After Back-To-Office Mandate; Confirms Sale Of Argentina, Chile Assets," Deadline, November 10, 2025.
• James Faris, "Paramount Skydance says 600 employees took severance and quit instead of returning to the office," Business Insider, November 10, 2025.
• Meg James, "Paramount sheds another 1,600 workers as David Ellison team digs in," Los Angeles Times, November 10, 2025.
• Dave Ritchie, "Paramount’s RTO Reckoning: 600 Exit Via Severance Amid Merger Overhaul," WebProNews, November 10, 2025.
• Cole Hediger, "The Most Famous Faces To Get Cut From CBS News Amid Major Network Changes," Nov. 8, 2025.
• Maeve Bidonde, "CBS: New management team orders round of cuts in employees, including Veteran Journalist Lisa Ling," The State Times, November 7, 2025.
• Dylan Huang, "Layoffs at Paramount signal changes in entertainment," Carlmont High School Scots Scoop, November 6, 2025.
• Reel 360, "“Merciless”: Inside Paramount Global’s massive Layoffs," November 7, 2025.
• Lucas Manfredi, Kayla Cobb, "Paramount Says 600 Employees Took Voluntary Severance Over Return-to-Office Push," The Wrap, November 10, 2025.