One thing is certain—David Ellison is already shaking things up at Paramount Pictures after Skydance’s surprise acquisition. While he hasn’t retained their hybrid models, as of January 5, 2026, all of his workers will need to report to the office every day. This memo, first reported by CNBC and provided to The Verge, highlights just how drastically the company’s internal climate seems to have shifted. Now employees are getting used to all these new changes post-merger.
Ellison’s plan will be implemented in stages. To start, the initial rollout will focus on workers located in LA and NYC. He underscored the importance of making this transition in order to position the company to meet its chronic long-term financial goals. “To achieve what we’ve set out to do – and to truly unlock Paramount’s full potential – we must make meaningful changes that position us for long-term success,” Ellison stated in his memo.
As part of this back-to-work initiative, employees who prefer not to return to the office full-time will have the option to pursue a buyout. The new buyout program is set to begin this Thursday and continue through September 15, 2026. Intended exclusively for workers based in the regional system’s two principal cities,
Ellison said that phase two of their plan would move beyond Los Angeles and New York. It will focus on U.S. embassies and consulates around the world. Through this holistic approach, Paramount seeks to reduce the environmental footprint of its operations, regardless of the geographic area in which they occur.
The news comes as Paramount is laying the groundwork for massive budget cuts. The company says it will cut 2,000-3,000 workers in early November. The company has struggled in the wake of the merger. This restructuring is an important step to create a sustainable operations platform and reset the table on those issues.
Ellison understands the impact these reforms will have on employees. He reassures, “We understand this is a big change for many, and we are committed to helping you through this adjustment.”
Taken collectively, these moves underscore Ellison’s desire to change the balance of power on Paramount’s sets while contending with the financial post-surround after its purchase. The emphasis on a return to the office underscores a broader trend in the entertainment industry, where companies are reevaluating work arrangements in light of recent market shifts.