Skydance orders five-day office week, offers buyouts to some staff

The company that now owns both Paramount and Warner Bros. wants its staff back at their desks every weekday, and it is offering some of them a way out.

The same memo set a mandatory five-day office week for the whole company. In it, the two leaders wrote, "we recognize that not everyone will see their future here, and we respect that."

Key facts

• Workers who qualify for the Voluntary Buyout (VBO) Program will receive their own message with personal terms and a set period to decide.
• Paramount-Skydance staff were already working in the office five days a week, while Warner Bros. Discovery staff were still on three.
• The office return will roll out one location at a time, and the biggest real estate hubs are Los Angeles, New York, Atlanta and London.
• Skydance has not said how many jobs it will cut, but layoffs are part of its savings plan.
• Skydance has not publicly released buyout amounts or eligibility rules.

Background

Skydance finished buying Warner Bros. Discovery on Oct. 6, 2026. WBD shareholders were paid $31.01666668 in cash for each share. Skydance Class B stock now trades on the NYSE as SKYD. The company says competition regulators covering nearly 70 jurisdictions all signed off on the deal.

The result is a very large company. Skydance calls itself one of the biggest media groups in the world, with nearly $70 billion in revenue and 200+ million streaming subscribers. Its studios and streaming brands include Paramount, Warner Bros., HBO, HBO Max, Paramount+ and Pluto TV. Its TV networks include CBS, CNN, CBS Sports, TNT Sports, Nickelodeon, Cartoon Network, MTV, Food Network, BET, HGTV and Comedy Central.

The company has promised at least 30 films a year for theaters, each playing there for at least 45 days, and says it already has 180+ TV shows. Kreiz led Mattel as CEO before he joined the new Skydance this month.

Cost cuts were expected from the start. Skydance says it wants at least $6 billion in run-rate synergies within three years. Most of that is meant to come from technology, integration and procurement, marketing and cutting back on real estate, the company says.

When the deal closed on Oct. 6, Ellison and Kreiz warned staff in a Day One memo that merging the two companies would bring difficult workforce decisions. Kreiz and board member Gerry Cardinale have said they do not expect most of the savings to come from cutting staff, and they point to technology and marketing changes instead.

What it means for you

Former Warner Bros. Discovery employees face the biggest change, since they had been going in three days a week. The start date for each office has not been announced.

The buyout is a choice, not an order. Staff who are eligible will get personal details and terms, along with a window to accept or turn down the offer. It is not known how many people qualify or how many will say yes. It is also not known how many layoffs will follow, or when.

The memo also told workers, "Please know we don't take any of this lightly."

The effects could reach beyond the company. A Los Angeles County report by CVL Economics estimated that about 4,500 direct film and TV jobs in the county could disappear over the three years the companies combine. The report put 10,360 job years at risk. It also counted 2,661 indirect jobs at small firms that serve production, plus 3,204 induced jobs, as exposed. The county report said as much as $547 million in tax revenue could be at stake, along with up to $4.06 billion of output from local businesses.

Practical steps

• Read any offer with care. The memo asks employees who get buyout papers to go through them closely and take questions to their leaders or HR contact.
• Know where to get help. Legacy Paramount staff can use My Paramount, legacy Warner Bros. staff can use Ask Employee Connection on WBD One, and FAQs are on the Skydance Integration Hub.
• Understand severance law. The FLSA, a federal law, does not require severance pay, which is set by agreement between a worker and an employer. The Employee Benefits Security Administration may help people who did not get severance owed under an employer plan.
• Know the notice rules for layoffs. Under the federal WARN Act, employers with 100 or more workers generally must give at least 60 calendar days of written notice before a mass layoff of 50 or more people at one site.

What happens next

The office rule will be phased in by location, and staff will get ample notice before it takes effect. Eligible workers should expect their personal buyout terms to arrive individually.

Over time, Skydance says, its streaming products will be combined into one service. The company aims to bring its net debt ratio down to a 3.0x target by the end of 2029. It also expects more than $10 billion in free cash flow by 2030.

FAQ

Do employees have to take the buyout? No. The program is voluntary, and each eligible worker gets personal terms and time to decide on the one-time offer.

When does the five-day office rule start? It rolls out by location, and employees will be given ample notice first. Exact dates for each site have not been shared.

How much is the buyout worth? Skydance has not publicly released buyout amounts or eligibility rules.

Is my employer required to pay severance? Not under the FLSA, because severance pay depends on an agreement between the employer and the worker.

How many jobs will be cut? Skydance has not said, though layoffs will be part of its cost savings.