Skydance pushes five-day office rule amid $111 billion merger

The entertainment industry is consolidating rapidly, and one of the largest deals in history is already reshaping the daily work lives of thousands of employees. Skydance Corp. announced on Monday that it is offering voluntary buyouts to select staff members while simultaneously requiring all workers to return to the office five days a week.

The news came just three weeks after the company finished its $111 billion acquisition of Warner Bros. Discovery. David Ellison, who leads the combined entity, sent a memo to employees explaining the changes. He and co-Chief Executive Ynon Kreiz wrote that the company is beginning to integrate the two businesses and is looking to save billions of dollars in the process. The memo acknowledged that the merger would not be a good fit for everyone, stating that the company respects that not all employees will see their future there.

This is not the first time Ellison has enforced a strict office schedule. Last year, after Skydance acquired Paramount, he required employees there to work in the office five days a week. The new policy will be rolled out in phases depending on the location. While the company has not released specific numbers on how many people will receive buyout offers or how many jobs are being cut, individual notifications will go out to eligible staff.

The acquisition closed on Oct. 6. It placed major properties like the Paramount and Warner Bros. film studios, CBS, CNN, and HBO under a single corporate umbrella. The combined company, operating under the Skydance name, aims to cut $6 billion in costs over the next three years. Of that total, $2 billion in savings are targeted for the first year alone.

Ellison has suggested that the savings will come mostly from technology, procurement, and real estate rather than from firing large numbers of people. However, the merger is still expected to lead to layoffs. A report from August, commissioned by the Los Angeles County Department of Economic Opportunity and the county Film Office, estimated that the deal could eliminate about 4,500 jobs in Los Angeles County over three years. A Skydance representative did not immediately respond to a request for comment on the new policies.

The buyout program and the office mandate are now active as the company starts the integration process. Employees are being told who qualifies for the exit package, and the office return schedule is beginning its phased implementation across different locations.