Paramount mandates 5-day-a-week return to office ahead of major cost cuts

David Ellison continues to put his stamp on Paramount after its acquisition by Skydance.

The CEO and chairman told employees Thursday that they will be expected to work in the office five days a week starting January 5, 2026, according to a memo obtained by CNBC. Employees who do not wish to make the transition can seek a buyout starting Thursday and until Sept. 15.

"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 wrote to staffers. "These changes are about building a stronger, more connected, and agile organization that can deliver on our goals and compete at the highest level. We have a lot to accomplish and we're moving fast. We need to all be rowing in the same direction. And especially when you're dealing with a creative business like ours, that begins with being together in person."

The move could help Paramount thin the herd ahead of looming staffing cuts.

Variety reported last month that the company is expected to lay off between 2,000 and 3,000 employees as part of its post-merger cost cutting measures. These cuts are slated for early November, Variety reported.

Paramount is looking to take $2 billion in costs out of the conglomerate amid advertising losses and industry-wide struggles with traditional cable networks.

Phase one of Ellison's back-to-work plan will see employees in Los Angeles and New York returning to a full five-day work week in the new year.

Phase two will focus on offices outside L.A. and New York, including international locations. A similar buyout program will be offered in 2026 for those who operate in these locations.

"We recognize this represents a significant change for many, and we're committed to supporting you throughout this transition," Ellison wrote. "We will work closely with managers to ensure you have the time and flexibility to make the necessary adjustments."