Los Angeles County report says Paramount-Warner merger could eliminate 4,500 production jobs
A Los Angeles County-commissioned study estimates the Paramount and Warner Bros. merger may cut 4,500 film and TV production jobs in the region over three years, with broader economic effects.
A report prepared by CVL Economics for Los Angeles County projects that the pending merger of Paramount and Warner Bros. could result in the loss of about 4,500 production jobs in the Los Angeles area within three years. The analysis adds that the combined company would likely face pressure to cut costs to service debt, potentially prompting a shift of productions out of the region and consolidation of programming slates.
The study notes that the merger would increase buyer concentration, especially in unscripted, reality and talk television, reducing independent commissioning options. It also estimates a ripple effect that could raise the total job loss to 10,360 across the regional economy.
Los Angeles County Supervisor Lindsey Horvath requested the economic impact assessment in March. An earlier preliminary report in June warned that 2,495 corporate positions could be at risk as the firms consolidate functions such as IT, real estate and marketing. The latest release focuses on production-related employment.
"L.A. County’s own economic report underscores what we have been saying all along: our industry is in decline, production is down and jobs are being lost — and lost for good if we don’t act," a Paramount spokesperson said.
Paramount counters that the merger would create a stronger entity capable of investing $30 billion annually in production and releasing at least 30 films a year, which it says would ultimately generate more jobs over time, though it has not pledged to keep those productions in Los Angeles.
The merger remains on hold until at least March 2027, when a federal antitrust trial involving twelve state attorneys general is scheduled. Separate lawsuits by the Writers Guild of America, the Directors Guild of America and IATSE address related concerns about job opportunities and the risks of further delays. Paramount has asked a court to require the plaintiffs to post a $1.88 billion bond as a condition for maintaining its agreement not to close the deal, with a hearing set for September 24 in Oakland.