Skydance Offers Voluntary Buyouts as Warner Bros. Merger Increases Cost Pressures

Skydance is offering some employees a one-time voluntary buyout as the media company seeks to reduce costs following its acquisition of Warner Bros. Discovery and the assumption of substantial debt, according to a company memo reviewed by Reuters.

Skydance is offering voluntary employee buyouts as it integrates Warner Bros. Discovery and seeks to manage costs following the merger. [Photo: New York Stock Exchange]

The company, whose shares have fallen by approximately one-third this year, is also introducing a policy requiring employees to work in the office five days a week, the memo showed.

“As we bring our teams together, we recognize that not everyone will see their future here, and we respect that,” Skydance CEO David Ellison and co-CEO Ynon Kreiz said in the memo.

Eligible employees will be informed of the buyout terms and given a specified period to decide whether to accept the one-time offer.

Earlier this month, Paramount Skydance completed its acquisition of Warner Bros. Discovery in a transaction reported at approximately $110 billion.

The combined company adopted the Skydance name, bringing together major film studios, streaming services, television networks and extensive entertainment libraries.

The merged company is expected to have approximately 53,000 employees, based on the companies’ respective annual filings as of the end of 2025.

Its debt burden is estimated at about $80 billion, creating pressure on management to control expenses, expand streaming operations, preserve cash flow from cable networks and improve theatrical film performance.

The company’s restructuring efforts come as the media industry faces changes in viewing habits, competition among streaming platforms and uncertainty surrounding the long-term economics of traditional television.

Semafor and CNBC also reported that Elon Musk had invested approximately $1 billion in Skydance. That reported investment should be distinguished from the company’s confirmed merger and employee buyout announcements.