Skydance offers buyouts, mandates office work

Skydance Corp. is offering voluntary buyouts to select employees as it consolidates operations following the Warner Bros. Discovery acquisition.

The company notified workers of the one-time payment program on Monday. This move comes nearly three weeks after the deal closed on October 6. The merger combined Paramount and Warner Bros. film studios, CBS, CNN, and HBO under one corporate umbrella. Skydance is currently pursuing $6 billion in cost reductions over the next three years, with $2 billion targeted for the first year.

David Ellison, the company's leader, and co-Chief Executive Ynon Kreiz sent a memo to staff to explain the changes. "As we bring our teams together, we recognize that not everyone will see their future here, and we respect that," the executives wrote in the message. Eligible employees will receive individual notices regarding their buyout offers. The company did not disclose how many workers qualify for the program or how many positions it aims to eliminate.

The memo also announced a shift in work policies. Skydance will require employees across the company to work in offices five days a week. This policy will roll out in phases by location. Ellison previously introduced a similar five-day in-office requirement at Paramount after Skydance acquired that studio last year.

A representative for Skydance did not immediately respond to a request for comment on the specifics of the buyout eligibility. The company has not announced how many employees might be affected by the voluntary program or subsequent layoffs.

The integration is expected to result in workforce changes, though Ellison has stated that savings would primarily come from technology, procurement, and real estate rather than headcount cuts. A report commissioned by the Los Angeles County Department of Economic Opportunity and the county Film Office in August estimated that the merger could eliminate about 4,500 jobs in Los Angeles County over three years.