Skydance, as it embarks on the work to integrate the businesses of Paramount and Warner Bros. Discovery, is offering certain employees a voluntary buyout in a “one-time offer.”
The new program was outlined by chairman and CEO David Ellison and co-CEO Ynon Kreiz in a memo to staffers Monday.
“As we bring our teams together, we recognize that not everyone will see their future here, and we respect that. To give eligible employees the option to move on in a way that works for them, we are introducing a Voluntary Buyout (VBO) Program,” the execs wrote. “Those who qualify will receive an individual communication with their personalized details and terms, and a window to decide whether to accept this one-time offer.”
They added, “Please know we don’t take any of this lightly. We are clear about what we’re building: a company that tells the stories people around the world love, embraces new ways to connect with audiences, and leads the next era of media and entertainment. We have the talent, the creative firepower and the ambition to do it, and we will get there together.”
Paramount’s massive $111 billion takeover of Warner Bros. Discovery closed on Oct. 6. In their “Day One” memo to employees that day, Ellison and Kreiz (who was the CEO of Mattel before joining the new Skydance earlier this month) acknowledged that layoffs will be part of the process. “Integrating two companies will bring change, including difficult decisions that affect our workforce,” the execs wrote in that memo. “We are committed to handling this process thoughtfully and respectfully.”
In the Oct. 26 memo, Ellison and Kreiz also said the new Skydance is moving to a mandatory five-days-per-week in-office policy across the company. “We believe in-person collaboration is vital to our culture and to the success of our business. Especially in a creative company like ours, the best ideas come from people in the same room, sharing perspectives, challenging one another and solving problems,” the execs said. “We truly believe this is in the best interest of our company and our people. We’ve seen the benefits firsthand at Paramount, and we want every part of Skydance to share in them.”
Skydance execs have said they are shooting to achieve more than $6 billion in cost savings on an annualized basis within three years, and part of that will come from layoffs. The company has not revealed at this point the extent of the job cuts it expects. According to a report issued by Los Angeles County in August, the Paramount-Warner Bros. merger could result in the loss of some 4,500 film and TV jobs over three years in L.A. alone.
Read the full memo sent by Skydance’s top brass Monday, a copy of which was obtained by Variety:
Team,
At Skydance, our goal is to build the next-generation media and entertainment company, powered by creativity and technology. We are creative-first, audience focused, tech-forward and globally scaled. And in a world of endless choice and fierce competition for attention, we don’t just want to succeed. We want to win.
To do that, we must be a strong, connected and agile company. Among our business and creative priorities, none matters more than building a strong culture, because it’s the foundation of everything we want to achieve. Winning requires us to work as one team: one company, fully aligned. That means communicating openly and collaborating efficiently across every part of the organization.
In-Person Collaboration
We believe in-person collaboration is vital to our culture and to the success of our business. Especially in a creative company like ours, the best ideas come from people in the same room, sharing perspectives, challenging one another and solving problems. Being together isn’t just about showing up. It’s about inspiring one another, learning and coaching, forming friendships and having the casual conversations that spark something great.
With that in mind, we will adopt a five-day in-office policy across all of Skydance. We truly believe this is in the best interest of our company and our people. We’ve seen the benefits firsthand at Paramount, and we want every part of Skydance to share in them.
While many of you are already in the office five days a week, we understand this may be a significant change to the daily routines of others. To give you time to plan and adjust, we will take a phased approach by location. You will receive ample notice before changes take effect, and we will work closely with managers to support you through the transition.
Voluntary Buyout Program
As we bring our teams together, we recognize that not everyone will see their future here, and we respect that. To give eligible employees the option to move on in a way that works for them, we are introducing a Voluntary Buyout (VBO) Program. Those who qualify will receive an individual communication with their personalized details and terms, and a window to decide whether to accept this one-time offer.
We recognize this is a significant decision, and we want you to feel informed and supported. If this applies to you, please review your materials carefully and reach out to your leadership or HR representative with any questions. FAQs and other resources are available on the Skydance Integration Hub, and HR support is also available through My Paramount (legacy Paramount employees) or Ask Employee Connection on WBD One (legacy Warner Bros. employees).
Please know we don’t take any of this lightly. We are clear about what we’re building: a company that tells the stories people around the world love, embraces new ways to connect with audiences, and leads the next era of media and entertainment. We have the talent, the creative firepower and the ambition to do it, and we will get there together.
Thank you for your commitment, and for the creativity and passion you bring to your work every day.
Best,
David and Ynon