Paramount CEO Ellison Orders Full Return-to-Office With Severance Offer Amid $2 Billion Cuts

David Ellison, the new CEO of Paramount following its $8 billion merger with Skydance Media, has mandated that employees at the company's Los Angeles and New York offices must return to the office full-time starting January 5, 2026, or opt for severance packages. This move is part of a broader restructuring effort aimed at cutting $2 billion in costs, with anticipated layoffs of 2,000 to 3,000 staff expected by early November. Ellison emphasized that in-person collaboration is essential for fostering creativity, innovation, and company culture, stating that being physically present helps teams share ideas and solve problems more effectively. The return-to-office requirement will later extend to other U.S. and international offices, accompanied by similar buyout options. This directive marks a significant cultural shift from pandemic-era remote work policies and is aligned with Ellison's plans to streamline operations, invest in technology consolidation, and position Paramount as a leaner, more competitive player in the evolving media landscape. Ellison's leadership also includes strategic investments such as acquiring UFC media rights and expanding production capabilities, signaling a rapid transformation of the company.