Congress fears the loss of jobs in Hollywood amid Warner Bros. acquisition

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California officials are worried about what changes at Warner Bros. Discovery might mean for people working in the entertainment industry.

U.S. Senator Adam Schiff and Representative Laura Friedman have written an open letter to the leaders of Netflix and Paramount Skydance, urging them to guarantee jobs for workers in California and across the United States.

Late last year, Netflix secured a deal to acquire Warner Bros., gaining control of its famous Burbank studios, as well as HBO and HBO Max. This $72 billion agreement is expected to significantly change the entertainment industry. Meanwhile, Paramount has repeatedly made offers to compete, but they’ve been consistently turned down.

Lawmakers on both sides of the aisle are worried about how this deal could impact jobs in the U.S. entertainment industry. The industry is a major economic driver, supporting over 680,000 jobs and contributing more than $115 billion to the economy each year, as highlighted in a recent letter.

Hollywood Inc.

The entertainment industry has struggled recently due to the COVID-19 pandemic and the writers’ and actors’ strikes. A potential combination of two big companies could lead to further layoffs, according to industry analysts.

Los Angeles film and television production declined by 13.2% between July and September of 2025 compared to the same months last year, following a post-COVID industry slowdown and an increase in projects filmed elsewhere. This continues a recent trend of job losses, with Los Angeles losing 42,000 positions in the industry between 2022 and 2024.

Both Ellison and Sarandos have explained why they think their companies could successfully acquire Warner Bros. However, both potential deals would involve substantial cost reductions. Paramount anticipates cutting $6 billion in expenses over the next three years, while Netflix plans to reduce costs by $2 to $3 billion. Experts suggest these cuts could significantly impact jobs.

Ellison previously stated that their offering benefits everyone involved – Hollywood, customers, and competition.

In the letter, Sarandos stated that they believe this benefits viewers and is a positive step for job creation and security within the entertainment industry.

Hollywood Inc.

As a film buff, I’m hearing some worrying chatter about Warner Bros. Discovery possibly being sold, or at least parts of it, to either Netflix or Paramount. Apparently, a lot of the Hollywood unions – like the Writers Guild and the Teamsters – are really concerned about what that could mean for everyone working in the industry. It’s definitely something I’m keeping an eye on, as it could shake things up a lot!

Netflix co-CEO Ted Sarandos announced at a Senate hearing that the company will invest $26 billion in movies and TV shows this year, primarily within the United States.

The letter from the lawmakers requests information about how AI is impacting creators’ jobs and what specific actions are being taken to protect those jobs in Los Angeles. Representatives Schiff and Friedman have also invited the CEOs to a meeting to discuss these concerns and their responses.

To help the U.S. stay competitive in the entertainment industry, Congress is developing a new law with support from both parties. This law would offer tax breaks for film and television production, similar to successful programs already in place in states like California, Louisiana, and Georgia.

The lawmakers explained that they see this as a way to both safeguard American film production and promote more jobs and long-term growth within the U.S.

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2026-02-07 00:01