According to Fast Company, around 600 Paramount Skydance employees at the vice-president level and below just took buyout packages rather than comply with a new five-day back-to-office mandate. The mass exodus happened after new CEO David Ellison announced the strict policy requiring employees to return to Los Angeles and New York offices starting January 5. The company offered buyouts beginning September 15 for those unwilling to return, but likely didn’t anticipate this many takers. The departures are costing the newly formed company $185 million in “restructuring changes” according to recent disclosures. This represents one of the largest workforce reductions following a return-to-office mandate in recent corporate history.
The great RTO experiment backfires
Here’s the thing about mandatory return-to-office policies: employees have options now. After years of proving they can work effectively from home, many skilled professionals simply won’t tolerate being forced back to cubicles five days a week. And when you’re talking about media companies in competitive markets like LA and New York? These are exactly the kind of talented people who can find remote work elsewhere.
The $185 million price tag is staggering. That’s nearly $308,000 per departing employee when you do the math. But the real cost might be even higher. Think about the institutional knowledge walking out the door. The relationships. The projects left hanging. This isn’t just about severance packages – it’s about rebuilding an entire corporate culture from scratch.
Questionable timing
Now, the timing here is particularly interesting. David Ellison just took over as CEO after Skydance Media’s acquisition of Paramount Global. So his first major move was essentially to clear house? That seems… bold. Either this was an intentional strategy to reduce headcount without traditional layoffs, or they genuinely misjudged how many people would choose freedom over the office.
And let’s be real – requiring five days in office feels almost archaic in 2025. Most companies have settled on hybrid models. Even the staunchest RTO advocates typically cap it at three days. Five days sends a pretty clear message: we don’t trust you to work unless we can see you.
Broader industry implications
This could become a cautionary tale for other companies considering strict RTO mandates. When you give talented professionals an ultimatum, you might not like the results. The media industry especially relies on creative talent that tends to value flexibility. Losing 600 people at once? That’s not just restructuring – that’s a brain drain.
Basically, the pandemic changed the workforce permanently. Companies that ignore that reality do so at their own peril. The question now is whether other executives will look at Paramount’s $185 million lesson and think twice about their own office policies.
