Skydance, the newly formed media conglomerate following Paramount’s $110 billion acquisition of Warner Bros. Discovery, has announced a voluntary buyout program for employees unwilling to comply with its five-day-a-week in-office policy, according to internal communications reviewed by multiple outlets on October 26.
The company, now operating under the Skydance name after the merger closed on October 6, confirmed in a memo to staff that eligible employees would receive individualized terms and a November 8 deadline to accept or decline the offer. Skydance employs approximately 53,000 people, per its latest filings, and now carries $80 billion in debt from the acquisition.
Policy Enforcement and Buyout Terms
Skydance’s leadership—CEO David Ellison and co-CEO Ynon Kreiz—stated in the memo that the in-office mandate applies across all divisions, with no exceptions mentioned. Employees previously working hybrid schedules at Warner Bros. Discovery (three days in-office) or full-time remotely at Paramount (five days in-office since January) are now subject to the same requirement.
Eligible staff who opt against returning to the office full-time are offered a one-time severance package of two weeks’ pay per year of service at Paramount or Warner Bros. Discovery, according to sources familiar with the proposal. The buyout is framed as a final, non-renewable offer, with decisions required by 11 p.m. ET on November 8, per an HR email obtained by Business Insider.
Financial Pressures and Strategic Rationale
The cost-cutting measures coincide with Skydance’s integration of the two legacy companies, which Ellison has described as focusing on $6 billion in savings over three years, with $2 billion targeted within the first year. While Ellison previously indicated that labor reductions would not be the primary driver of savings, the buyouts and office policy are part of broader efforts to optimize operations amid the merged entity’s debt burden.
The company is scheduled to report third-quarter results on November 9, where investors will assess progress on its integration strategy. Earlier this month, reports emerged that Elon Musk invested roughly $1 billion in Skydance, though neither company has confirmed the details.
Employee Response and Cultural Implications
The memo acknowledged the policy’s impact on morale, stating: “As we bring our teams together, we recognize that not everyone will see their future here, and we respect that.” Skydance has framed the in-person requirement as essential to collaboration and cultural cohesion, asserting in internal communications that physical presence will enhance “open communication” and “efficient collaboration” across the organization.
The phased transition to full-time in-office work will vary by location, according to the memo, though no specific timeline was provided. The buyout program applies to employees who do not qualify for exceptions, though the criteria for exceptions remain undisclosed.