As Paramount enters its next chapter, newly-minted CEO David Ellison is also putting his stamp on workplace culture.

The Skydance mogul sent a companywide memo to employees of Paramount Pictures, CBS, Paramount+, Showtime, Nickelodeon, MTV, BET and Comedy Central outlining a policy for full-time staffers in New York and Los Angeles to work in-office by January 2026, moving toward five days a week on site. Ellison wrote that Paramount will offer severance packages for those employees who dont opt in.

Paramounts exec leadership has said that by early November it will unveil a plan to exceed $2 billion-plus in synergies (i.e. finding redundancies between merging Skydance and Paramount, whether thats in duplicative areas like administration or product, etc). Ellison had stated that a major restructuring will take place across the companys silos, but that the goal would be to reinvest in emerging areas, including uniting the companys technology stack and exploring artificial intelligence uses. We are in the midst of a generational change in our industry and we understand Paramount has faced its own significant challenges, compounded by the reality of a merger process that stretched out over a considerable time period, Ellison wrote in a letter upon closing the Skydance merger on Aug. 7, referencing the 13-month delay to closing the deal due to regulatory scrutiny.

The C-suite has also signaled that these layoffs will be in one major move, rather than in several smaller waves of cuts as a quarter-by-quarter occurrence. At the end of last year, the company had 18,600 employees, but that was before a significant number of pink slips were given this year and Skydance Media was integrated.

Paramounts major stateside locations include its Times Square headquarters in Manhattan as well as the 65-acre Paramount Pictures lot on Melrose Ave. in Los Angeles. The prior leadership regime under then-owner Shari Redstone had sold off CBS New York BlackRock headquarters building for $760 million, CBS Studio City lot for $1.85 billion in 2021.

Ellisons full memo on Sept. 4 is below:

Dear Team,

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 the relationships that will make this company great. 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. Ive never seen that happen on Zoom. Being together in-person isnt just about showing up its about actively engaging with the business, supporting one another and the teams efforts, and contributing to our shared momentum.

To achieve what weve set out to do and to truly unlock Paramounts full potential we must make meaningful changes that position us for long-term success. 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 have a lot to accomplish and were moving fast. We need to all be rowing in the same direction. And especially when youre dealing with a creative business like ours, that begins with being together in person.

With this in mind, we will begin a phased return-to-office plan starting in January 2026, ultimately moving towards an in-person work environment where employees are in the office full-time (five days a week).

Heres what to expect:

Phase One: Beginning January 5, 2026, employees assigned to our Los Angeles and New York offices will return to full-time office work. We understand that some people may not choose or be able to make this transition. And so, starting today through September 15, 2025, we will be offering a severance opt-in program for VPs and below, based in Los Angeles and New York, who cannot or do not wish to return full-time. Details will be shared directly with those eligible.

Phase Two: In 2026, we will announce plans for employees not assigned to our Los Angeles and New York offices, including international offices and those originally hired into fully remote roles. VPs and below in Phase Two will be eligible for a similar opt-in program and will receive details at a later date. We will be adopting this same approach in our international offices and will roll out the specific plans in accordance with our local legal obligations.

We recognize this represents a significant change for many, and were committed to supporting you throughout this transition. We will work closely with managers to ensure you have the time and flexibility to make the necessary adjustments.

For more details, please log into Okta to visit ourFAQ page. If you dont find what you need, you can submit additional questions to ourAskHR team.

Thank you for your patience, adaptability, and continued dedication. Together, we are building a company that is stronger, more innovative, and ready to win. The opportunity ahead is extraordinary, and Im confident that working side by side, we will achieve great things.

Best,

David