Paramount chairman and CEO David Ellison will require all of the company’s employees to work in the office five days a week, with a phased return to office set to begin in January, according to a new memo sent to staffers on Thursday.
“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. “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.”
He argued that in-person collaboration is “absolutely vital to building and strengthening our culture and driving the success of our business.”
“Our people are the key to winning, and being together helps us innovate, solve problems, share ideas, create, challenge one another, and build the relationships that will make this company great,” he explained. “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. 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.”
The first phase of the return-to-office plan begins Jan. 5 and will impact employees in Paramount’s Los Angeles and New York offices. For vice presidents and below who choose not to or are unable to return to the office, Paramount will offer a “severance opt-in program” through Sept. 15.
The majority of Paramount employees who accept severance during Phase 1 will have an end date of Oct. 31, though some will be asked to stay through Dec. 31 or early 2026 to support “critical business transition activities.” Those who do not select severance and are unable to return to the office full-time could be subject to termination for cause with no severance.
Phase 2, which will impact U.S. employees in other locations, international office employees and individuals in fully remote roles, will take effect later in 2026. U.S. employees in other locations and fully remote employees are expected to return by the third quarter of 2026. Employees included in Phase 2 will be eligible for a similar severance package if they choose not to return.
“We recognize this represents a significant change for many, and we’re committed to supporting you throughout this transition. We will work closely with managers to ensure you have the time and flexibility to make the necessary adjustments,” Ellison’s memo concluded. “Thank you for your patience, adaptability, and continued dedication. Together, we are building a company that is stronger, more innovative, and ready to win. The opportunity ahead is extraordinary, and I’m confident that working side by side, we will achieve great things.”
The move to bring employees back to the office full-time isn’t surprising. During a media briefing with reporters last month, Paramount president Jeff Shell told TheWrap and other outlets they would take a look at the company’s return to office policy.
Shell also told TheWrap they would review their real estate portfolio as they look to exceed $2 billion in cost savings, including their Times Square headquarters at 1515 Broadway and National Amusements’ portfolio of movie theaters. At the time, Shell said that the Paramount lot in Hollywood was safe.
Paramount is eyeing thousands of job cuts, which it expects to be completed by November, when it reports third quarter earnings for 2025. As of the end of 2024, Paramount had approximately 18,600 employees globally across 32 countries and approximately 3,500 project-based staff. Meanwhile, Skydance has more than 500 employees, per its website.
