Skydance initiates voluntary exits ahead of layoffs, mandates 5-day-office workweek
What's the story
Skydance, the media and entertainment company, has announced a voluntary buyout program for select employees. The move comes as part of Skydance's integration with Paramount and Warner Bros. Discovery. The company's chairman and CEO David Ellison and co-CEO Ynon Kreiz detailed the new initiative in a memo sent to staff on Monday, according to Variety.
Program specifics
Ellison and Kreiz explain the program
Ellison and Kreiz explained the voluntary buyout (VBO) program as a way for eligible employees to leave on their own terms.
They said, "As we bring our teams together, we recognize that not everyone will see their future here, and we respect that."
The executives stressed this decision wasn't taken lightly as they are focused on building a company that tells stories people love globally.
Merger impact
Job cuts anticipated in merger process
Paramount's $111 billion acquisition of Warner Bros. Discovery was finalized on October 6.
In their initial memo to employees, Ellison and Kreiz acknowledged that the merger would result in layoffs as part of the integration process.
They said, "Integrating two companies will bring change, including difficult decisions that affect our workforce."
However, they assured a thoughtful and respectful approach to this transition.
Policy change
In-office work 5 days a week
Along with the voluntary buyout program, Ellison and Kreiz also announced a mandatory five-days-per-week in-office policy across Skydance.
They said, "We believe in-person collaboration is vital to our culture and to the success of our business."
The executives emphasized this decision was made in the best interest of both the company and its employees.
Financial goals
Skydance targets over $6 billion in annual cost savings
Skydance has set an ambitious goal of achieving over $6 billion in annual cost savings within three years.
Part of this strategy includes layoffs, though the company hasn't disclosed how many jobs will be cut.
An August report from Los Angeles County estimated that the Paramount-Warner Bros. merger could lead to a loss of around 4,500 film and TV jobs over three years in Los Angeles alone.