Skydance Offers Buyouts and Orders Five-Day Office Return Ahead of Layoffs

Skydance is offering eligible employees a voluntary buyout ahead of planned layoffs, chairman and CEO David Ellison and co-CEO Ynon Kreiz announced in a memo to staff on Oct. 26. The same memo reinstates a mandatory five-days-per-week in-office policy across the company.

The executives positioned the Voluntary Buyout (VBO) Program as a courtesy, not a severance exercise. "As we bring our teams together, we recognize that not everyone will see their future here, and we respect that," Ellison and Kreiz wrote. "To give eligible employees the option to move on in a way that works for them, we are introducing a Voluntary Buyout (VBO) Program."

What are the terms of the buyout?

The memo, a copy of which was obtained by Variety, gives little away. Qualifying employees will receive an individual communication with personalized details and terms, plus a window to decide whether to accept what the executives call a "one-time offer."

Support channels are split by legacy employer: HR help runs through My Paramount for former Paramount staff and Ask Employee Connection on WBD One for former Warner Bros. Discovery staff, with FAQs posted on the Skydance Integration Hub. The company has not disclosed how many employees qualify.

Why now?

Paramount's $111 billion takeover of Warner Bros. Discovery closed on Oct. 6. In their "Day One" memo that day, Ellison and Kreiz — the latter joined Skydance earlier this month after serving as CEO of Mattel — conceded that job cuts were coming. "Integrating two companies will bring change, including difficult decisions that affect our workforce," they wrote then. "We are committed to handling this process thoughtfully and respectfully."

Skydance executives have said they are targeting more than $6 billion in annualized cost savings within three years, and layoffs will account for part of that. The company has not revealed the expected scale of the cuts. A Los Angeles County report issued in August estimated the Paramount–Warner Bros. merger could eliminate some 4,500 film and TV jobs over three years in L.A. alone.

What does the office mandate say?

The five-day return-to-office rule applies to all of Skydance, phased in by location with what the memo calls "ample notice." The rationale is cultural. "Especially in a creative company like ours, the best ideas come from people in the same room, sharing perspectives, challenging one another and solving problems," the executives wrote.

They added: "We truly believe this is in the best interest of our company and our people. We've seen the benefits firsthand at Paramount, and we want every part of Skydance to share in them." The memo notes that many employees already come in five days a week, and asks managers to support the rest through the transition.

What comes next?

The executives closed on brand: "Please know we don't take any of this lightly. We are clear about what we're building: a company that tells the stories people around the world love, embraces new ways to connect with audiences, and leads the next era of media and entertainment. We have the talent, the creative firepower and the ambition to do it, and we will get there together."

Employees now wait for two envelopes: one with buyout terms, one with a return-to-office date. How many accept the first will shape how deep the involuntary cuts eventually go.