Paramount Global’s new leadership, under Chairman and CEO David Ellison, is implementing sweeping changes following the company’s recent acquisition by Skydance. The latest move, announced in a companywide email on Thursday, mandates a full-time return-to-office (RTO) policy, requiring all employees to work in the office five days a week according to Deadline. This directive aligns Paramount with tech industry giants like Amazon, surpassing the hybrid schedules of traditional Hollywood studios such as Disney, NBCUniversal, and Warner Bros., which currently require four or three days in-office, respectively.
The policy, set to begin in January 2026, will roll out in two phases. Starting January 5, employees in Paramount’s Los Angeles and New York offices must work on-site full-time. For those unwilling or unable to comply, a severance opt-in program is available for vice presidents and below, with a window open through September 15, 2025. Later in 2026, the mandate will extend to employees in other locations, including international offices and those hired for fully remote roles, with a similar severance program planned. The company is navigating local legal requirements for its international rollout.
This shift marks a significant departure from Paramount’s prior flexible work arrangements, where employees typically spent two to three days in the office weekly. The decision follows observations by Paramount President Jeff Shell, who noted the sparse attendance at the company’s current 1515 Broadway headquarters during a press conference last month. Plans are also underway to relocate Paramount’s corporate headquarters to the Melrose lot in Los Angeles, signaling a broader restructuring.
The RTO mandate is part of a larger cost-cutting strategy, with the new leadership targeting over $2 billion in savings post-merger. This includes a planned reduction of 2,500 to 3,000 positions across theatrical, streaming, linear, and other divisions, with layoffs expected in November. Severance packages opted into by employees may contribute to these reductions, potentially offsetting the need for additional cuts.
The five-day office requirement mirrors policies at tech companies like Amazon, where Amazon MGM Studios also operates under a similar mandate. Ellison’s rationale emphasizes the need for in-person collaboration to foster innovation, strengthen company culture, and drive success in a competitive creative industry. However, the policy is likely to face resistance from employees accustomed to hybrid schedules, which have become a cornerstone of post-pandemic work-life balance.
As Paramount charts this new course, the industry watches closely to see if other studios will follow suit, potentially reshaping Hollywood’s workplace norms.
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