UPDATE: David Ellison, CEO of Paramount Skydance, has just announced a mandatory return to the office for employees five days a week starting on January 5, 2026. This decisive move is part of a broader strategy aimed at achieving $2 billion in cost savings while fostering a culture of in-person collaboration.
The full-time office policy will impact employees based in Los Angeles and New York as Paramount Skydance seeks to enhance its operational efficiency and revitalize its entertainment offerings. Staff members who cannot or choose not to comply with the new policy will be offered severance packages, effective immediately for those at the VP level and below, as the company braces for potential job cuts amid this transition.
In a memo circulated to employees, Ellison emphasized the importance of face-to-face collaboration, stating, “I believe that in-person collaboration is absolutely vital to building and strengthening our culture and driving the success of our business.” He noted that this decision comes as the company embarks on a new direction, aiming to integrate more technology into its operations.
While some employees expressed concern over the policy, citing personal circumstances that may prevent them from relocating or commuting, others remain open to the change. One employee shared with Business Insider, “I know people who don’t live near NYC or LA and international contractors are worried, but we don’t know how they are going to handle that yet.”
This announcement marks a significant shift in workplace policy, positioning Paramount Skydance ahead of other major media companies. For comparison, Warner Bros. Discovery has called employees back for three days a week, while Disney has implemented a four-day return policy for many of its staff.
This move follows Ellison’s recent acquisition of control over Paramount Global, which he aims to revamp through strategic partnerships, including a $7.7 billion deal for UFC rights and a $1.5 billion agreement with the creators of “South Park.”
As corporate America continues to navigate the post-pandemic landscape, this aggressive policy reinforces the urgency for Paramount Skydance to adapt and innovate in a rapidly evolving industry.
Employees can expect further details regarding the phased return, including plans for international offices, to be released in the coming months. Ellison’s commitment to a collaborative and engaged workplace underscores the high stakes involved in this transition.
Stay tuned for more updates as this story develops. The future of Paramount Skydance hinges on how effectively it can implement these changes and rally its workforce behind this new vision.