Paramount Sees 600 Employees Opt for Buyout Amid Office Return Policy

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ago 2 hours

Paramount Sees 600 Employees Opt for Buyout Amid Office Return Policy

In recent months, significant changes are underway at Paramount Skydance, a media company led by CEO David Ellison. The influential decision to implement a new office return policy has resulted in a voluntary buyout option for employees.

Voluntary Buyout Amid Office Return Policy

Starting January 5, 2026, Paramount Skydance has mandated a return to the office five days a week for its employees. To accommodate those who are not willing or unable to comply, a voluntary buyout package was introduced. This option became available on September 15, 2025.

Approximately 600 employees opted for the buyout.
This option was extended to staff at the VP level and below in offices located in Los Angeles and New York.

Impending Layoffs and Workforce Reduction

Following the buyouts, the company is also preparing for significant layoffs. Ellison indicated that about 1,000 jobs would be cut by the end of October. Additionally, another 1,000 layoffs are anticipated, cumulatively reducing the workforce by 10%.

This move comes after the Skydance-Paramount merger finalized on August 7. The company’s strategy aims to streamline leadership and improve decision-making efficiency, as highlighted by Ellison’s letter to shareholders regarding Q3 financial results.

Divestitures and Increased Cost-Saving Targets

Paramount Skydance has initiated divestitures, including the sale of Televisión Federal in Argentina. In the subsequent months, plans to divest Chilevision in Chile are set to complete by the first quarter of 2026. This action is projected to eliminate another 1,600 jobs within the company.

In response to the changing business landscape, Paramount has raised its post-merger cost-savings target from $2 billion to at least $3 billion. Notably, two-thirds of these savings are expected to derive from reductions in non-labor expenses.

Impact on Streaming Services

In conjunction with these changes, Paramount plans to increase prices for its Paramount+ streaming subscriptions starting January 15, 2026. The following adjustments are set:

Paramount+ Essential (ad-supported) will rise by $1 to $8.99/month.
Paramount+ Premium (no ads) will increase by $1 to $13.99/month.

Paramount Skydance’s diverse portfolio includes brands such as Paramount Pictures, CBS, Showtime, and Nickelodeon, positioning it as a major player in the entertainment industry.