600 Paramount Skydance Employees Resign Following CEO's Strict Return-to-Office Mandate

Paramount Skydance is facing a staggering $185 million in severance costs as part of a broader $1.7 billion restructuring initiative.

Approximately 600 Paramount Skydance employees have resigned following new CEO David Ellison's mandate requiring full-time office attendance, Fortune Magazine reports. These employees, primarily based in Los Angeles and New York, opted for buyout packages rather than complying with the five-day in-office work requirement.

The directive was implemented shortly after the $8 billion Paramount-Skydance merger earlier this year. Ellison, whose father founded Oracle, explained the policy as essential 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 stated in a company-wide memorandum, according to Fox News.

Recent financial filings reveal the mass exodus has resulted in $185 million in severance payments. Additionally, Paramount disclosed projected restructuring expenses of $1.7 billion, encompassing layoffs and divestment from certain international operations.

This development aligns with a growing corporate trend of enforcing Return-to-Office (RTO) policies. A BambooHR survey from 2024 indicated nearly 25% of US executives implemented RTO requirements anticipating voluntary resignations as a cost-reduction strategy.

NBCUniversal has announced similar measures, requiring employees to work in-office four days weekly by 2026.

Paramount aims to further reduce expenses by $1 billion while streamlining operations through increased implementation of AI-driven efficiency tools. Industry experts caution that as companies continue adopting automation technologies, additional workforce reductions may occur across multiple sectors.