Roughly 600 employees have left Paramount Skydance after the company ended its remote work option and mandated a full return to office, according to filings made public recently and cited by Fortune.
The exits came after CEO David Ellison informed staff that the studio’s new policy requires all employees to be onsite five days a week, marking a sharp shift from the flexible work arrangements many had relied on since the pandemic.
The decision follows the $8 billion merger between Paramount and Skydance Media finalized in August 2025, which positioned Ellison as the head of the newly formed entertainment powerhouse. After taking charge, Ellison gave employees a choice, return to the office full time or take a severance package. That policy, according to reports, led to a wave of resignations and cost the company an estimated $185 million in severance-related expenses.
In an internal memo, Ellison emphasized that bringing employees back to the office was essential for rebuilding company culture and sustaining long-term growth. He argued that face-to-face collaboration encourages innovation, faster problem-solving, and stronger team dynamics where key elements, he said, that fuel both creative output and overall business performance.
READ: Paramount asks employees: return to office or exit (
Ellison went on to share that many of his most valuable career lessons came from being physically present in collaborative work environments, experiences he believes virtual meetings simply can’t replicate. He noted that returning to the office isn’t just about showing up, but about active participation, teamwork, and contributing meaningfully toward the company’s shared mission and creative vision.
Company filings indicate that about 600 staff members, mostly mid- and lower-level executives based in Los Angeles and New York chose to take Ellison’s severance offer rather than return to the office. Paramount later confirmed that the buyouts amounted to roughly $185 million in total severance costs.
The filings also mentioned restructuring expenses tied to what the company described as “actions to align the business around our strategic priorities.” In a letter to shareholders issued before its quarterly earnings report, Paramount stated that it anticipates about $1.7 billion in restructuring charges as part of its ongoing effort to streamline operations and integrate the two companies following the merger.
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Several major U.S. corporations have tightened their return-to-office policies in 2025, marking a decisive shift away from pandemic-era flexibility. Honda, for instance, has directed its U.S. workforce to be on-site at least 80 percent of the time beginning Oct. 6, citing the need to adapt to a rapidly changing business environment. Ford has similarly instructed most of its corporate staff to return to the office at least four days a week starting Sept. 1, emphasizing that daily, in-person collaboration will help “accelerate Ford’s transformation.”
Starbucks, under new CEO Brian Niccol, is also reinstating a strong office culture, requiring corporate employees to be present Monday through Thursday beginning in early 2026 as part of its broader turnaround plan. Meanwhile, Amazon has gone a step further, ending hybrid work altogether and reinstating a full in-office schedule. CEO Andy Jassy defended the move, saying the benefits of working together physically are “significant.”
Together, these decisions signal a growing trend among America’s largest employers to restore pre-pandemic workplace norms and reinforce in-person collaboration as a cornerstone of their corporate strategy.