Ellison Bets On Office Culture as Paramount Gambles on Creative Synergy

Paramount Global, under the leadership of newly appointed CEO David Ellison, has mandated that all employees based in New York and Los Angeles return to full-time office work beginning January 2026. Employees who decline the requirement will be offered severance packages as part of broader cost-cutting measures aimed at achieving over $2 billion in savings [1]. The policy, outlined in a company-wide memo, marks a significant shift in workplace culture following the $8 billion acquisition of Skydance Media in August 2025, a deal that faced prolonged regulatory scrutiny and required Paramount to settle a lawsuit involving Donald Trump with a $16 million payment [1].

Ellison’s directive emphasizes in-person collaboration as essential for innovation, problem-solving, and team cohesion, especially within the creative sector. In his message to employees, he underscored the importance of being physically present to foster a connected and agile organization. The return-to-office initiative is part of a larger strategy to integrate Skydance’s operations into Paramount, including its video game and animation divisions [1]. The move also aligns with Ellison’s broader restructuring plans, which include eliminating redundancies across the merged entities and reinvesting in emerging areas such as artificial intelligence and unified technology platforms [2].

The phased approach will begin with employees in New York and Los Angeles, with similar policies expected to be extended to international offices in 2026 [2]. Severance packages will be available to eligible vice presidents and lower-ranking employees who choose to leave rather than comply with the full-time in-office requirement. While the exact number of affected employees has not been disclosed, the initiative is anticipated to result in a large, centralized round of layoffs ahead of the company’s next earnings report [1]. This strategy contrasts with prior leadership under Shari Redstone, who had sold several Paramount properties, including the CBS New York headquarters, to reduce costs [2].

Ellison’s tenure as CEO has already included several major business moves. These include securing a $7.7 billion, seven-year deal for UFC broadcasting rights, investing in a production hub for "Yellowstone" creator Taylor Sheridan, and acquiring streaming rights for "South Park." The company also finalized a global film distribution partnership with Legendary, excluding China, and is exploring AI applications and technology stack integration across its streaming platforms [1].

The return-to-office policy reflects a broader trend among media companies following the initial shift to remote work during the early stages of the pandemic. For example, Disney’s CEO Bob Iger had previously mandated a similar policy in 2023 [1]. Ellison’s approach, however, is more aggressive, signaling a fundamental reimagining of Paramount’s internal operations as it seeks to compete in a rapidly evolving entertainment landscape. The effectiveness of the policy will depend on its implementation and how well it aligns with the creative needs of the workforce, particularly in Hollywood, where remote collaboration has become increasingly common [2].

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[1] Paramount's David Ellison tells employees to return to the office five days weekly starting January 2026 (https://www.latimes.com/entertainment-arts/business/story/2025-09-04/paramount-david-ellison-return-to-the-office-buyouts-offered)

[2] Paramount Staffers Expected Back at Office 5 Days a Week (https://www.hollywoodreporter.com/business/business-news/paramount-return-to-office-five-days-ellison-1236361463/)