When it’s time to let a star employee go
Costs, egos, and creative control: Why Paramount let Taylor Sheridan walk.
Costs, egos, and creative control: Why Paramount let Taylor Sheridan walk.
One of Paramount’s most influential creative forces has exited the studio. Taylor Sheridan—the writer and producer behind blockbuster hits like Yellowstone, Landman, and Lioness—is leaving Paramount for NBCUniversal’s Peacock, a direct streaming competitor.
The shift comes soon after David Ellison took over as CEO in August, following the Skydance merger. Sheridan will continue working on his existing Paramount shows through January, when his deal concludes.
A major loss amid restructuring
Sheridan’s departure lands at a turbulent time. Paramount is already undergoing major layoffs and restructuring. In an October 29 memo, Ellison announced roughly 1,000 job cuts, citing overlapping roles and a need to refocus for growth. Amid the shake-up, losing a star creator known for anchoring major franchises can heighten anxiety internally—especially if communication from leadership isn’t clear.
Financial leader Jennifer Openshaw notes that during moments like this, transparency is critical in preventing employee panic. Without it, people tend to assume deeper problems.
Creative control and clashing egos
Reports suggest Sheridan chose to walk after disputes over costs and creative authority. Under previous leadership, he had wide latitude and large budgets. With Ellison’s arrival, that autonomy was tightened. Decisions were made without Sheridan’s involvement, and after executive Chris McCarthy—his key supporter—left the company, frustrations escalated.
Industry observers say personality may have played as much of a role as money. As The Hollywood Reporter’s James Hibberd put it, “This streaming service ain’t big enough for the both of us.” Sheridan bristled at reduced control; Ellison bristled at Sheridan’s outsized influence.
Openshaw explains that sometimes letting a high-performing employee go is the best move—especially when their expectations exceed what the company can realistically offer. When done thoughtfully, it can preserve culture and demonstrate leadership maturity. But, she adds, leaders must then spotlight their mission and invest in developing emerging talent to avoid a morale downturn.
The cost equation
Sheridan’s work didn’t come cheap. His projects reportedly cost Paramount around $500 million in 2023 alone. While losing him may hurt creatively, the company may have viewed it as a significant cost reduction.
However, competitors were eager to step in. Warner Bros. Discovery courted Sheridan—with gifts included—but Peacock ultimately landed him with a reported $1 billion deal and, crucially, assurances of creative freedom. Donna Langley, chairman of NBCUniversal Studio Group, also invested in building a personal connection with Sheridan—something Ellison was unwilling to match.
The long-term risk
Letting a star talent walk may be financially pragmatic—but losing that star to a key rival is another matter. Sheridan helped define Paramount’s recent brand identity. Whether his departure becomes a cost-saving win or a strategic misstep will depend on how effectively the company reinvents itself.
As Openshaw notes, the core of situations like this often comes down to collaboration: “Great leaders understand that success comes from listening, inclusion, and working together.”