In one of his first company-wide directives, Paramount Chief Executive David Ellison announced that employees must work in the office five days a week, beginning in January.
In a Thursday email, Ellison outlined the company’s phased-in approach for office attendance — including offering a severance package to Los Angeles- and New York-based vice presidents and lower-ranking employees if they wish to leave the company rather than return to the office.
The move sets the stage for what’s expected to be deep staff cuts later this year. Ellison and his RedBird Capital Partners investors have promised Wall Street more than $2 billion in cost savings as they take over the storied media company, install their own teams and integrate Skydance Media businesses, including video games and animation, into Paramount’s operations. Paramount previously cut several hundred jobs this summer.
Paramount representatives have declined to comment on the pending layoffs beyond saying they hope to achieve the cuts with one large round.
The Ellison family and RedBird finalized their $8-billion takeover of Paramount last month after months of turmoil as federal regulators chewed over the deal until Paramount agreed to pay President Trump $16 million to settle his lawsuit over “60 Minutes” interview edits.
Since then, Ellison and his lieutenants have moved quickly to remake Paramount with big bets, including agreeing to pay $7.7 billion for media rights to UFC’s mixed martial arts events in the U.S. in a seven-year deal with TKO Group Holdings. The company also invested in the construction of a Texas-based production hub for prolific “Yellowstone” creator Taylor Sheridan. It agreed to pay $1.5 billion over five years for streaming rights for “South Park,” the Comedy Central cartoon.
On Thursday, Paramount said it had reached a three-year global film distribution deal with “Dune” studio Legendary, beginning with next year’s “Street Fighter.” Paramount will market and distribute Legendary films throughout the world, except in China, where Legendary East oversees releases.
Financial terms were not disclosed. The deal allows Warner Bros. to continue to distribute some films, including co-productions “Dune: Part Three” in 2026 and “Godzilla x Kong: Supernova” in 2027.
CBS News also is bracing for change. Paramount’s new chief is reportedly in negotiations with journalist Bari Weiss to buy her center-right news site, the Free Press, and join CBS News in an undisclosed role. A Paramount spokesperson on Thursday declined to comment on the talks.
Until now, Paramount staffers were expected to be in the office a couple days a week, but it was not consistently applied, according to people with knowledge of the matter but not authorized to comment.
Ellison is attempting to reset Paramount’s culture after years of under-investment, layoffs and management turmoil. In the email, he wrote the return-to-office directive was aimed at “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,” Ellison said. “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.”
Media companies have had varying policies after the initial “work-from-home” policies imposed at the start of the COVID-19 pandemic nearly five and a half years ago. Sony Pictures Entertainment brought its employees back to the Culver City lot relatively quickly. Disney Chief Executive Bob Iger ordered a return to the office in January 2023, less than two months after he returned to lead the company.
“As I said during our town hall, some of the most formative moments of my life happened in rooms where I was a fly on the wall, listening and learning,” Ellison wrote in his email. “I’ve never seen that happen on Zoom. Being together in-person isn’t just about showing up — it’s about actively engaging with the business, supporting one another and the team’s efforts, and contributing to our shared momentum.”
Times Staff Writer Sam Masunaga contributed to this report.
