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$2bn restructuring | Paramount sets five-day a week RTO mandate

Paramount Pictures studio entrance gate

Paramount Global has mandated a strict return-to-office requirement that will bring employees back on site full time beginning in January 2026.

The decision, communicated in a company-wide memo from CEO David Ellison, comes just months after the media group’s takeover by Skydance. The policy will position Paramount alongside tech majors such as Amazon, which already enforce five-day office schedules, while outpacing Hollywood rivals like Disney, NBC Universal, and Warner Bros., where hybrid models remain in place.

Phased rollout and severance

Implementation will occur in two stages. Employees at the New York and Los Angeles offices must resume a five-day presence on January 5, 2026. Staff outside those hubs, including international offices and individuals originally hired for remote roles, will follow later in the year.

A severance opt-in program is being offered for vice presidents and below who choose not to comply, with an application window running through September 15, 2025. A similar program is being designed for overseas locations, with adjustments for local regulations.

The move represents a sharp departure from Paramount’s earlier policy, which had generally required two to three office days per week. The shift also comes as the company prepares to move its headquarters from 1515 Broadway in New York to the Melrose lot in Los Angeles.

Cuts and cultural change

The return-to-office mandate is one element of a broader restructuring aimed at generating more than $2 billion in cost savings. Paramount is planning to reduce its workforce by 2,500 to 3,000 roles across divisions including theatrical, streaming, and linear operations. Layoffs are expected in November, although employee participation in the severance program may offset some of those reductions.

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Ellison has argued that daily, in-person collaboration is necessary to fuel innovation, strengthen organizational culture, and maintain competitiveness in the creative sector. Yet the move risks clashing with employees who embraced hybrid routines as a permanent feature of post-pandemic work life.

President Jeff Shell, who highlighted empty offices at Paramount’s New York headquarters during a recent press conference, has been a vocal supporter of the change.

As the company tightens operations under its new ownership, the entertainment industry is watching closely to see whether Paramount’s hardline stance prompts other studios to reevaluate their own workplace models.

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