Hundreds of Paramount Skydance staffers have opted to walk away from their jobs rather than return to a full five-day office schedule.
As part of sweeping changes following the long-delayed $8 billion merger, CEO David Ellison informed employees in September that they would need to work on-site five days a week or accept a voluntary buyout, Fox News reported. The move was framed as an effort to “unlock Paramount’s full potential.”
“I’ve never seen [formative experiences] happen on Zoom,” Ellison wrote in his companywide email, noting how crucial in-person learning has been throughout his career.
Roughly 600 workers in Los Angeles and New York—at the vice-president level and below—chose the severance option, according to filings made on Monday. Those payouts cost the company $185 million in restructuring expenses “associated with actions to align the business around our strategic priorities.” The company’s shareholder letter also stated Paramount anticipates $1.7 billion in total restructuring costs.
Before the merger, Paramount had endured a prolonged period of uncertainty that included pandemic disruption and leadership turnover. When Ellison, also CEO of Skydance and son of Oracle’s Larry Ellison, stepped in to lead the combined company, he pledged a renewed focus on restoring the brand’s legacy as a major media player.
NBCUniversal is taking a similar approach, notifying employees that starting in January 2026 they must return to the office four days a week or take severance.
Back-door layoffs
While many workers are resisting rigid office mandates in favor of flexibility, companies have increasingly used return-to-office rules as a strategy to reduce headcount without traditional layoffs.
A 2024 survey by BambooHR found that about 25% of C-suite executives hoped return-to-office policies would lead to voluntary turnover. Additionally, roughly 20% of HR professionals admitted the policy was intentionally designed to shrink staff numbers.
According to its shareholder letter, Paramount is aiming to cut another $1 billion in costs. Following the merger, Ellison had initially targeted $2 billion in savings. The company plans to divest select international operations and move about 1,600 employees to their corresponding business assets. In October, it quietly began laying off around 1,000 workers.
These reductions come as the broader labor market shifts toward what economists call a “low-hire, more-fire” environment. Companies are increasingly investing in AI and automation to improve productivity, RSM chief economist Joe Brusuelas noted in a recent advisory.
“As the focus among businesses now turns to efficiencies and increasing productivity, we expect layoffs to increase, causing unemployment to rise,” Brusuelas said.
