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David Ellison’s Skydance is offering voluntary buyouts to employees as the media giant pushes ahead with plans to slash costs following its takeover of Warner Bros. Discovery, according to an internal email obtained by The Post.
The media giant is also imposing a five-day return-to-office mandate across its operations, marking another major shakeup for workers as Ellison seeks to streamline the sprawling entertainment empire. News of the buyout was first reported by the Washington Post.
In the Monday memo signed by Ellison and Skydance co-CEO Ynon Kreiz, the former Mattel chief who joined the company earlier this month, executives announced a new voluntary buyout program aimed at eligible employees who may not like the new office policy.
“As we bring our teams together, we recognize that not everyone will see their future here, and we respect that,” the email stated.
“To give eligible employees the option to move on in a way that works for them, we are introducing a Voluntary Buyout (VBO) Program.”
Employees who qualify will receive individualized offers spelling out their terms and a window to decide whether to accept the one-time package.
The memo did not specify how many workers would be eligible, how much they would receive or when the program would take effect.
The move comes just weeks after Skydance completed its acquisition of Warner Bros. Discovery on Oct. 6, bringing HBO, CNN and Warner Bros. under the same corporate roof as Paramount, CBS and Paramount+.
Ellison has pledged to wring at least $6 billion in annual savings from the combination within three years, largely through technology consolidation and layoffs.
The aggressive cost-cutting campaign comes as the newly enlarged company shoulders a massive debt burden of about $82.5 billion against $7.9 billion in cash as of June 30.
Skydance aims to reduce its debt burden by the end of 2029 while generating more than $10 billion in annual cash flow by 2030 — money that could help pay down borrowings.
Elon Musk recently invested roughly $1 billion in Skydance, according to a report last week by Semafor, deepening his business ties to the Ellison family.
The new buyout offer follows an earlier round of belt-tightening after Ellison merged Skydance with Paramount in August 2025.
The Paramount-Skydance merger initially carried a $2 billion annual cost-savings target, which management raised to at least $3 billion in November 2025.
In October of that year, Paramount Skydance announced it would be laying off about 1,000 employees. Roughly 600 other workers accepted a voluntary severance option linked to an earlier return-to-office program.
By February, management said it expected to achieve more than $2.5 billion in annualized efficiencies by the end of 2026.
The latest companywide directive will require employees across Skydance to report to their offices five days a week, extending a policy already in place at Paramount.
“We believe in-person collaboration is vital to our culture and to the success of our business,” the executives wrote.
“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 memo acknowledged that the stricter policy could disrupt the routines of employees who have been working remotely or on hybrid schedules.
Skydance said it would implement the requirement in phases by location, with workers receiving advance notice before the changes take effect.
The company also pledged to work with managers to support employees through the transition, while directing those eligible for buyouts to review their individual offers and consult human resources before deciding whether to leave.
The Post has sought comment from Skydance.