In a major shake-up in the global entertainment industry, around 600 employees of Paramount Skydance have quit their jobs after the company's new CEO, David Ellison, mandated a full return to office, according to Fortune Magazine. The employees, based mainly in Los Angeles and New York, chose to take a buyout package instead of working five days a week from the office.
According to the news report, the directive came shortly after the $8 billion merger between Paramount and Skydance earlier this year. Ellison, the son of Oracle founder Larry Ellison, justified the move as part of a broader strategy to "unlock Paramount's full potential" and rebuild the company's creative culture.
"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," Ellison said in a companywide memo, as reported by Fox News.
The mass resignations have cost the company $185 million in severance payouts, according to filings released this week. Paramount also disclosed it expects $1.7 billion in restructuring expenses, which include layoffs and divestments from some international operations.
The move reflects a growing trend among global corporations enforcing Return-to-Office (RTO) policies. A 2024 survey by BambooHR found that nearly one in four US executives implemented RTO mandates expecting voluntary resignations as a cost-cutting measure.
NBCUniversal recently announced a similar plan, requiring employees to return four days a week by 2026.
Paramount is also seeking to reduce expenses by an additional $1 billion and streamline operations amid increased reliance on AI-driven efficiency tools. Experts warn that as companies continue to automate, more layoffs could follow across industries.
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