Skydance Corp. has initiated a voluntary buyout program for certain employees as it moves forward with integrating Warner Bros. Discovery following the closing of their $111 billion acquisition earlier this month. The merger, finalized on October 6, resulted in the company adopting the Skydance name under the leadership of CEO David Ellison and Co-CEO Ynon Kreiz.

In a memo sent to staff on Monday, Skydance emphasized that the buyout offer is limited to “eligible employees,” who will be notified individually. The company did not disclose any specific targets for the number of buyouts it intends to grant. The communication also outlined a return-to-office policy requiring employees to be present five days per week, with the transition implemented in phases depending on location. This move follows a similar directive Ellison set for Paramount after Skydance’s acquisition of the studio last year.

“As we bring our teams together, we recognize that not everyone will see their future here, and we respect that,” the memo stated. It highlighted the company’s intent not only to succeed in the competitive entertainment industry but to dominate it.

The announcement of voluntary buyouts comes amid expectations that the merged entity will undertake significant workforce reductions, potentially resulting in hundreds or even thousands of layoffs as operations are consolidated. Skydance now carries more than $80 billion in debt due to the acquisition. Prior to the deal’s completion, Paramount pledged to reduce costs by $6 billion over three years, aiming to achieve $2 billion in savings within the first year.

Ellison has maintained that most efficiencies will stem from improvements in technology, procurement, and real estate optimization rather than labor cuts. Nonetheless, the company faces the challenge of balancing aggressive cost reductions with plans to invest at least $30 billion annually in film, television, and gaming content.

An August report commissioned by the Los Angeles County Department of Economic Opportunity and the L.A. County Film Office projected that up to 4,500 jobs in L.A. County could be lost over three years as a consequence of the merger and integration process.

As Skydance navigates the complex merger and restructuring phase, its leadership underscores a strategic focus on long-term growth, even as changes to the workforce and workplace policies proceed.