No work-from-home: 600 employees quit at US-based firm, opt for CEO’s buyout offer
Employees at higher positions, including those at the vice-president level and below, accepted the severance package, costing the company around $185 million.
AN end to remote work at US-based entertainment company Paramount Skydance had an unintended casualty – around 600 employees decided not to return to the office. According to a report by Fortune magazine, nearly 600 staffers in Los Angeles and New York packed up their desks after CEO David Ellison issued a companywide decree: return to the office five days a week or take a buyout.
Why did Paramount end remote work?
After the $8 billion merger of Paramount and Skydance Media in August 2025, Ellison took charge of the media giant and, in an email to staff, emphasised the importance of “in-person collaboration” to “drive the success of the business.”
“I believe that in-person collaboration is absolutely vital to building and strengthening our culture and driving the success of our business. Our people are the key to winning, and being together helps us innovate, solve problems, share ideas, create, challenge one another, and build relationships that will make this company great,” Ellison wrote in the memo obtained by Fox News Digital.
He added: “As I said during our town hall, 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. Being together in person isn’t just about showing up — it’s about actively engaging with the business, supporting one another and the team’s efforts, and contributing to our shared momentum.”
Employees at higher positions, including those at the vice-president level and below, accepted the severance package, costing the company around $185 million.
The firm cited restructuring expenses “associated with actions to align the business around our strategic priorities.”
And that’s just the beginning — Paramount expects to incur $1.7 billion in total restructuring costs as it trims operations and prepares for its next act.
What challenges did Paramount face before the merger?
Before the merger, Paramount had already been navigating years of turbulence — pandemic disruptions, leadership shake-ups, and a revolving door of CEOs.
Ellison stepped into the spotlight earlier this year, promising to restore Paramount’s once-golden reputation and fend off accusations of political bias.
What’s next for Paramount?
It seems to be working. Paramount plans to cut another 1,600 jobs and reduce costs by $1 billion, on top of the 1,000 layoffs that began last month.
The company’s restructuring push marks a new chapter in its post-merger transformation — one that may reshape not just Paramount’s future, but the broader culture of corporate work in Hollywood.
