A merger between Paramount and Warner Bros. Discovery would likely trigger thousands of job losses across Hollywood and its surrounding support industries, according to a new analysis submitted this week to the Los Angeles County Board of Supervisors.
The report, prepared by CVL Economics and the Department of Economic Opportunity, was commissioned to gauge the potential fallout of a completed Paramount-WBD deal. While merger-related layoffs are common as companies eliminate overlapping roles, the study paints a stark picture for the region’s entertainment workforce and the local businesses that depend on it.
Even under a best-case scenario where Paramount remains in California, the study projects a loss of at least 4,500 jobs within the newly combined studio operations in Los Angeles, according to The Wrap, which first reported on the findings.
Beyond the studios themselves, the report estimates that upward of 5,800 additional jobs could be cut from related businesses across the city — from prop houses and caterers to restaurants, clothiers, and other service providers that rely on the spending of studio employees. As those workers leave or tighten their belts, the economic ripple effect would be significant.
In total, the economic impact of these job losses would include $1.26 billion in wages, $2.78 billion in economic value, $4.06 billion in total business output, and $547 million in tax revenue — including $78.6 million in local taxes, the bulk of which (63%) comes from property taxes, according to The Wrap.
Production Patterns Already Shifting
The analysis also sheds light on how Paramount and Warner Bros. Discovery have already been reducing their production footprint in California. Between 2023 and 2025, the two companies shot just 73 films in the state — and only one in Los Angeles. That represents 8.2% of their combined film output, a rate similar to the rest of the industry, the report found.
For television and streaming productions, the two studios fared better: 30.3% of their shows were shot in California, slightly above the industry average of 25.4%. Of those California-based productions, 85.4% were filmed in L.A.
The report was submitted to the L.A. County Board of Supervisors on Tuesday to help officials understand the likely consequences of a completed merger, which has been the subject of legal and political scrutiny.
The Texas Threat
But the study’s authors warn that the job losses could be far more severe if Paramount follows through on its threat to relocate to Texas or Tennessee. California Attorney General Rob Bonta has filed a lawsuit seeking to block the merger, and Paramount has indicated it may leave the state if that legal fight continues.
If Paramount were to move its operations out of state, the report suggests that tens of thousands of jobs could be lost to Los Angeles as the combined studio operations shift elsewhere.
“Overall, the economic impact of losing these jobs would be $1.26 billion in wages, $2.78 billion in economic value, $4.06 billion in total business output and $547 million in tax revenue, including $78.6 million in local taxes — most of which (63%) comes from property taxes,” The Wrap reported.
The report’s release comes amid broader concerns about the health of the entertainment industry in California. Warner Bros. Discovery has been selling assets in part because it is struggling to stay afloat, and production has been fleeing the state due to high costs — a trend that benefits other states and countries, according to the report and commentators.
“The days of Hollywood just printing money for itself by simply being in operation are long over,” the Breitbart article notes, reflecting a sentiment echoed by industry analysts who see this merger as both a symptom and a potential accelerant of the entertainment industry’s contraction in the region.
For L.A. County officials, the report provides a data-driven look at what could be an unprecedented shakeup in the region’s economic backbone. Whether the merger ultimately proceeds — and whether Paramount holds its ground in California — remains to be seen.
Source: www.breitbart.com — https://www.breitbart.com/entertainment/2026/08/19/study-paramount-warner-bros-merger-could-mean-mass-job-losses-for-hollywood/