600 Paramount Skydance employees quit after five-day work-from-office mandate

Around 600 employees of Paramount Skydance have resigned after being instructed to return to the office five days a week, according to company filings submitted on Monday and reported by Fortune magazine. The departures follow a directive issued by CEO David Ellison, who informed staff that remote work would no longer be permitted under the company’s new in-person collaboration policy.

The move comes after the $8 billion merger between Paramount and Skydance Media in August 2025, which placed Ellison at the helm of the entertainment conglomerate. Following the merger, he reportedly told employees that they must either return to the office full time or accept a severance package, which ultimately cost the company around $185 million.

Ellison stated in an internal memo that he considered in-person collaboration vital to strengthening company culture and driving long-term success. He said that direct interaction fosters innovation, idea sharing, problem-solving, and stronger relationships, all of which contribute to the organisation’s creative and business momentum. He further explained that some of the most formative experiences of his career had occurred through observing and learning in physical workspaces, something he felt could not be replicated through virtual meetings. He added that being physically present was not merely about attendance but about active engagement, teamwork, and contributing meaningfully to the company’s collective goals.

According to disclosures, the 600 employees, mainly at the vice-president level and below across Los Angeles and New York offices, opted for Ellison’s buyout offer. Paramount confirmed that the severance packages had cost the company approximately $185 million.

The filings also referred to restructuring costs linked to “actions to align the business around our strategic priorities.” In a shareholder letter released ahead of the company’s quarterly earnings presentation, Paramount said it expected to incur $1.7 billion in restructuring expenses as part of its broader post-merger realignment strategy.