David Ellison is continuing to reshape Paramount following its acquisition by Skydance, unveiling a significant shift in workplace policy that will soon affect thousands of employees. In a memo to staff, the CEO and chairman announced that all employees will be required to return to the office full time beginning January 5, 2026. Those unwilling to make the adjustment will have the option to pursue a buyout package available from now until September 15.
Ellison emphasized that the move is designed to unify Paramount’s workforce and strengthen collaboration in an industry where creativity thrives in face-to-face environments. “To achieve what we’ve set out to do — and to truly unlock Paramount’s full potential — we must make meaningful changes that position us for long-term success,” he wrote. “These changes are about building a stronger, more connected, and agile organization that can deliver on our goals and compete at the highest level. We need to all be rowing in the same direction. And especially when you’re dealing with a creative business like ours, that begins with being together in person.”
The initiative is being rolled out in phases. The first phase will apply to Paramount’s major hubs in Los Angeles and New York, where employees will be required to work in the office five days a week starting in the new year. The second phase will extend to offices outside these cities, including international operations, later in 2026. A similar buyout program will be offered to employees in those regions.
This decision also comes as Paramount prepares for significant cost-cutting measures. Reports last month suggested the company is planning layoffs affecting between 2,000 and 3,000 employees, expected to take place in early November. These cuts are part of an effort to eliminate approximately $2 billion in costs amid falling advertising revenues and the broader challenges facing traditional cable networks.
Ellison acknowledged that the transition would be a major adjustment for many staff members, pledging support during the process. “We recognize this represents a significant change for many, and we’re committed to supporting you throughout this transition,” he said. “We will work closely with managers to ensure you have the time and flexibility to make the necessary adjustments.”
The policy reflects a broader trend of media and entertainment companies tightening operations in response to shifting industry economics while also prioritizing in-person collaboration to spark innovation and creativity.
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