Crippling impact of Paramount-Warner deal on Los Angeles workforce revealed

Paramount Skydance’s $111 billion takeover of Warner Bros.Discovery could lead to devastating bloodshed for Hollywood’s economy, according to a new report from Los Angeles County.The merger between the two legacy studios puts about 2,500 jobs in the county and 6,000 globally at potential risk, the County Department of Economic Opportunity calculated.Corporate, tech and real estate jobs are potentially in jeopardy given duplicative roles across the two companies.

The combined studios are under pressure to deal with an “unusually high” $82 billion debt burden, and $6 billion in savings are eyed by consolidating roles and functions.Much of that will heavily impact Los Angeles County, the report said.“The findings reinforce what workers, employers, and small businesses have been telling us for years: our entertainment economy remains in a fragile recovery period,” said department director Kelly LoBianco.To make things worse, the new company may not shoot many films in the area, which would provide some economic boost.Of the 19 films that were scheduled to release last year from the two studios, only one was primarily based in California.“For the regional economy, one can take seriously the optimistic case that the combined company could substantially increase its theatrical and television output,” said Adam Fowler, an economist at CVL Economics.

California's top news, sports and entertainment delivered to your inbox every day.Please provide a valid email.

By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story “Given the trajectory of local production in recent years, Los Angeles is not well positioned today to capture much of that hypothetical increase.”The report recommended the county reach out to the new company for commitments to local job growth and support and incentivize more local Hollywood production through tax credits or easier permitting.

The numbe...