When it’s time to let a star employee go
One of Paramount’s most powerful creative minds has left the production company. Taylor Sheridan—whose major hits, including Yellowstone, Landman, and Lioness, made him one of Paramount’s most powerful writers and producers—has ditched the media house.
The move comes shortly after a new chief executive, David Ellison, came on board in August and a merger between the company and Skydance was approved. Sheridan will remain involved with his Paramount projects until his current deal ends in January.
But while Sheridan helped prime Paramount for success, starting early next year, he will be making programs for NBCUniversal’s streaming service, Peacock—a direct competitor.
So what happened? Why would a company let a star performer walk?
A major loss amid restructuring
The loss will undoubtedly be felt by the media company, which is already coping with layoffs and restructuring. Losing a star performer who’s acted as an anchor can make things feel even more unmoored and uncertain for the employees who remain.
On October 29 Ellison sent a memo to staff, explaining that around 1,000 roles would be cut as the company addresses “redundancies that have emerged across the organization” as well as “phasing out roles that are no longer aligned with our evolving priorities and the new structure designed to strengthen our focus on growth.” Sheridan, a writer, producer, and director, reportedly made his decision to part ways with Paramount after spats over costs and creative control.
Previously, Sheridan had become accustomed to loose budgets for his projects. However, with a new executive on board, it seemed Sheridan’s leverage was being reined in. After some key decisions were made without his knowledge, and Chris McCarthy (a Paramount executive who managed Sheridan’s projects) left the company, tensions quickly rose, people close to the producer said, per The Wall Street Journal.
Jennifer Openshaw, a nationally known financial leader and CEO of the nonprofit Girls With Impact, tells Fast Company that when a high performer leaves amid restructuring, it can easily rattle other employees. When clear communication isn’t a priority, it can lead others to panic about potential internal issues.
“That transparency helps maintain trust and stability,” Openshaw says.
A tale of two egos
The dustup begs the question: How could Paramount let such a massive talent go? And why would any organization allow this to happen?
Creative control is pretty crucial in ensuring working relationships can be maintained, especially in industries like entertainment.
Openshaw says that sometimes letting a star employee go is simply “the right thing to do,” especially when they can “command more than you can offer.” In the case of Sheridan and Ellison, that may have been the case, given Sheridan’s hefty tab.
But it’s hard to miss that it’s tough to fit two sizable egos in a room.
“We also can’t overestimate how much it might be personal, for both men,” James Hibberd, a contributor to The Hollywood Reporter, said in a recent debate about the controversy. “Ellison doesn’t like how much power and control Sheridan wields, while Sheridan doesn’t like the way he’s been treated since Ellison took over.”
Hibberd added, “It’s very: ‘This streaming service ain’t big enough for the both of us.’”
Openshaw agrees that egos are, well, paramount when it comes to predicting the success of projects and the future of a company. Sometimes major decisions like this are made to protect the company’s larger goals.
Openshaw says that “when done thoughtfully,” letting even a star employee walk can reflect both “leadership and integrity. It protects your culture, strengthens trust, and often turns former employees into long-term ambassadors.” Still, Openshaw says, in order to avoid panic, leaders should “highlight the organization’s values and mission by creating new opportunities for the next generation to grow.”
Para-mounting costs
Of course, costs can’t be overlooked, either. Sheridan’s creative mind wasn’t cheap. His projects reportedly cost Paramount $500 million in 2023.
Concerns had been raised about the producer’s spending requirements, too, as previously reported by The Wall Street Journal. From that lens, Paramount may be looking at the loss as a giant money-saver.
Either way, while Paramount seemed to let Sheridan walk away, other media houses were apparently trying to woo him at the same time. Before Sheridan signed with NBCUniversal, Warner Bros. Discovery chief David Zaslav gifted him a pair of cowboy boots once worn by James Dean.
Ultimately, cost was not issue for Paramount competitor NBCU. Not only did chairman Donna Langley offer Sheridan a whopping $1 billion deal, she developed a personal relationship with him, and appealed to his ego by reportedly letting him know he’d have the control he grew used to at Paramount. That was something Ellison wasn’t ready to do, and it seems to have cost him a giant star.
Therein lies the rub of letting star talent go: Even if it’s for cost savings, losing them to one of your main competitors might well come back to bite you.
According to Openshaw, sometimes it’s an inability to collaborate that seals the deal. She notes, “Great leaders understand that success comes from listening, collaboration, and inclusion.”
