Skydance is launching an employee buyout program, with David Ellison and Ynon Kreiz launching what is expected to be the first of many cost-cutting efforts in a memo to staff Monday.
The memo begins by announcing a mandatory five-day-a-week return-to-office plan, aligning Warner Bros. Discovery on what Paramount was already doing. The new policy will be rolled out location by location.
He adds that for employees who do not wish to make this change, the company will launch a voluntary buyout program, in which all those who apply will benefit from personalized conditions.
“Please know that we do not take any of this lightly,” Ellison and Kreiz wrote in the memo. “We are clear about what we are building: a company that tells the stories people around the world love, that embraces new ways to connect with audiences, and that 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.”
The buyback program will be one of several steps Skydance is taking to reduce costs and achieve its goal of $6 billion in operational efficiencies. Layoffs are expected to be among them, although Kreiz and Skydance board member Gerry Cardinale were keen to stress that they don’t expect the majority of that figure to come from staff reductions.
Instead, they expect technological and marketing changes to help them achieve these cost reductions.
Kreiz, it should be noted, initiated a global reorganization of Mattel after joining that company.
You can see the memo from Ellison and Kreiz below.
Team,
At Skydance, our goal is to build a next-generation media and entertainment company, powered by creativity and technology. We are creative-first, audience-focused, tech-forward, and global. And in a world where choices are endless and competition is fierce for attention, we don’t just want to succeed. We want to win.
To achieve this, we must be a strong, connected and agile company. Among our business and creative priorities, the most important is building a strong culture, because it is the foundation of everything we want to achieve. To win, we must work as one team: one company, fully aligned. This means communicating openly and collaborating effectively across all parts of the organization.
In-person collaboration
We believe in-person collaboration is essential to our culture and business success. Especially in a creative business like ours, the best ideas come from people in the same room, sharing perspectives, challenging each other, and solving problems. Being together isn’t just about showing up. It’s about inspiring each other, learning and practicing, building friendships and having casual conversations that spark something great.
With this in mind, we will be adopting a five-day in-office policy across Skydance. We sincerely believe that this is in the best interest of our company and our employees. We’ve seen the benefits of Paramount and we want every part of Skydance to benefit.
Although many of you are already in the office five days a week, we understand that this may be a significant change to others’ daily routines. To give you time to plan and adapt, we will take a phased approach by location. You will receive sufficient notice before the changes come into effect and we will work closely with managers to support you through the transition.
Voluntary Buyback Program
By bringing our teams together, we recognize that not everyone will see their future here, and we respect that. To give eligible employees the opportunity to grow in a way that suits them, we are launching a Voluntary Buyout (VBO) program. Those who qualify will receive one-on-one communication with their personalized details and terms, as well as a window to decide whether or not to accept this unique offer.
We recognize that this is an important decision and we want you to feel informed and supported. If this applies to you, please review your documents carefully and contact your management or human resources representative with any questions. FAQs and other resources are available on the Skydance Integration Centerand HR support is also available via My primordial (former Paramount employees) or Ask Employee Connection on WBD One (former Warner Bros. employees).
Please know that we do not take any of this lightly. We’re 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 power and the ambition to achieve this, and we will achieve it together.
Thank you for your commitment, as well as for the creativity and passion that you bring to your work every day.
Best,
David and Ynon
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