Six hundred employees of US giant Paramount Skydance chose to quit rather than comply with a strict return-to-office (RTO) policy announced in September. The directive followed the long-delayed $8 billion merger of the two media giants, Fox News reported.
The development comes weeks after a source in Paramount Skydance revealed that the company had begun to cut about 1,000 jobs last month and expects to shed 1,600 more.
CEO David Ellison, in a companywide email, told staff they must work in-person five days a week or accept a buyout. “I’ve never seen formative moments happen on Zoom,” Ellison wrote, citing the need for collaboration to “unlock Paramount’s full potential.”
Paramount pays $185 million in severance
But, company filings on Monday revealed that about 600 employees at vice-president level and below in Los Angeles and New York offices took the offer, costing Paramount $185 million in severance. The filings noted restructuring costs tied to aligning operations with strategic priorities. A shareholder letter ahead of earnings projected $1.7 billion in restructuring expenses, Fortune reported.
The move comes as Ellison pushes aggressive cost-cutting, including plans to save $2 billion post-merger and an additional $1 billion through divestments and layoffs.
Skydance completed its $8 billion acquisition of Paramount in August, and executives warned at the newly merged entity's first press conference that layoffs would be announced in November.
Backdoor layoffs on the rise
NBCUniversal has issued a similar ultimatum, requiring employees to return four days a week from January 2026 or accept severance.
Analysts say RTO mandates are increasingly used as “back-door layoffs.” A 2024 BambooHR survey cited by Fortune found 25 percent of US executives hoped for voluntary turnover from such policies, while 20 percent of HR leaders admitted RTO was intended to reduce headcount.
Economists warn the trend reflects a broader shift toward efficiency as firms invest heavily in AI. “Expect layoffs to increase, causing unemployment to rise,” RSM chief economist Joe Brusuelas said in a client note.
Meanwhile, Paramount did not respond to Fortune’s request for comment.
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