Paramount Skydance has officially rolled out its stringent return-to-office (RTO) mandate this week, marking a definitive end to remote work flexibility for its employees in key US hubs. The policy, which requires staff in New York and Los Angeles to work on-site five days a week, represents a major strategic shift for the entertainment giant as it pushes for stronger in-person collaboration.
Mandate Leads to Significant Staff Exodus
The company's firm stance on office attendance has had immediate consequences. Paramount confirmed that employees who were unable or unwilling to adhere to the new five-day requirement were offered severance packages. Approximately 600 workers accepted these packages, a number that highlights the significant scale of this organizational transition. Staff members who are not based in these primary offices fall under "Phase 2" of the RTO plan, with further specifics anticipated later in the year.
CEO's Praise for Staff and RTO Task Force
In a company-wide email reviewed by Business Insider, Paramount Skydance CEO David Ellison addressed the workforce after the first week of the new policy. Ellison, who first announced the mandate in September last year, acknowledged the adjustment period for many. "I know that returning to the office full-time has been an adjustment for many, and I truly appreciate the flexibility and commitment you've shown," he wrote.
Ellison was quick to highlight the perceived benefits, stating that the "positive energy and increased productivity" from physical co-location were already noticeable. He also extended gratitude to the internal RTO Task Force for their efforts in preparing the offices to smoothly accommodate the influx of returning employees, ensuring the transition was as seamless as possible.
Ellison's Vision for the "New Paramount"
Ellison's memo also connected the return-to-office drive with the broader revival of the company, launched just five months ago. He framed the in-person work model as integral to executing the company's ambitious strategy. The CEO outlined a clear goal: to transform Paramount for the future by supporting storytellers, investing in technology, and making bold moves to define the next era of entertainment.
While acknowledging upcoming challenges, Ellison expressed confidence in the team's ability to meet ambitious goals, crediting their expertise and resilience. The message concluded on a motivational note, reinforcing a collective push forward under the new operational normal.
