Over 600 employees have quit following Paramount’s five-day RTO mandate, bringing attention back to the matter of employers and employees warring over in-person work. Earlier this year, when there was still some uncertainty about the potential resolution of the Paramount Skydance merger, the company announced a five-day RTO policy, providing employees with a buyout alternative in case they were unwilling to comply. While the Paramount Skydance buyouts in 2025 were framed as an opportunity to clear the way to “unlock Paramount’s full potential,” reports suggest that the offer cost the company $185 million.
Paramount’s five-day RTO mandate resulted in 600 employees accepting a voluntary buyout instead, reportedly tagged with a $185 million cost. (Image: Pexels)
Paramount’s Five-Day RTO Mandate Led 600 Employees Into Taking a Buyout Offer Instead
Return-to-office mandates are increasingly being churned out by businesses across industries, and employees have put on a united front in standing up against them. While the pull back to the workplace has taken on a hybrid format for some, many businesses have doubled down on returning to traditional operations full-time. Paramount’s five-day RTO mandate is just one example of an RTO policy that has pursued a full-time return, and while it’s true that the large majority of employees have chosen to comply with the change, the number of those who chose to quit their jobs is far from small.
Around 600 Paramount employees quit due to the RTO mandate this year, opting to leave rather than return to work full-time. Employees may have other reasons for quitting as well, such as the uncertainty with the Paramount merger, the rumors of upcoming layoffs, and the possibility of better job opportunities elsewhere.
Experts have hypothesized that organizations may be using RTO policies as a way to bring down the workforce numbers, urging employees to quit voluntarily rather than use the dreaded “layoff” word around them. When buyouts haven’t been sufficient, many businesses have conducted layoffs anyway, and employees are slowly realizing that they have some choice in when to leave the organization, picking a time that benefits them.
Paramount Skydance’s buyout deal in 2025 may have simply presented them with the perfect opportunity to relocate, with the promise of severance to fall back on; however, it’s impossible to deny that the resistance to RTO policies also played a role.
Paramount’s Five-Day RTO Switch Is Rumored to Have Cost the Company $185 Million
Approximately 600 Paramount employees from the company’s LA and NY offices quit following the RTO, accepting the buyout offer. Interestingly, not only did the company lose some employees at the vice-president level and below, but Fortune reported that in Paramount’s recent company filings, it revealed that the severance packages cost the business $185 million. Paramount also conducted layoffs across its business, and the company revealed that its restructuring expenses could add up to $1.7 billion.
Apart from the layoffs, the company has also made other business changes to improve its positioning in the media market and revitalize the brand. The company expects to see $3 billion in cost savings, which is a step up from the $2 million initially forecasted. The business reorganization into Studio, DTC, and TV Media units is part of the change, but it’s unclear how employees are being reorganized to support this new structure.
“This structure ensures that decisions are made in the best interest of Paramount overall, enabling faster, more effective choices and keeping us agile and aligned with our vision,” Paramount Skydance said regarding the decision, according to Deadline.
CEO David Ellison also discussed his plans to streamline the workforce and eliminate complications in the decision-making process, adding, “By optimizing our leadership layers and overall talent base, we are now better positioned to align resources with our strategic priorities and invest boldly in areas with the greatest long-term potential.”
Paramount Skydance’s Offer of Severance Following the RTO Mandate Is an Interesting Strategy
While Paramount’s five-day RTO policy certainly cost the business heavily, the company’s offer of severance benefits was seen as a change from many other organizations. Amazon also witnessed a fair share of resistance to its RTO mandate, with employees threatening to quit, but without any offers to make the prospect appealing, staying on at the job was likely easier. The company has also made layoffs this year, which means it inevitably provided some benefits to employees as they were let go, but there was no evidence of voluntary buyouts.
Many businesses have turned to buyouts this year, from Google to UPS. Most recently, YouTube also encouraged employees who weren’t satisfied with the company’s preparation for its future strategy to accept the buyout offer and leave if they wished. Such a strategy has been found to be preferable by many employees, who feel some sense of control over the situation by having been allowed to leave on their own terms.
The problem with buyouts is that there is no clear way to determine just how many will accept the offer, bringing up the risk of too many or too few employees leaving voluntarily. Still, employees who are already uncertain about their position at the organization can pose as flight risks, and it’s up to the employer to determine whether to draw them back in or encourage them to make their way out.
Have insights to share regarding the Paramount Skydance five-day RTO mandate? Share your insights with us. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
