Major Downsizing in Hollywood Studio Services
A significant player in Hollywood’s infrastructure scene is undergoing a substantial downsizing, resulting in job cuts and the closure of essential parts of its studio services. This development highlights ongoing strains within the economy, particularly in Los Angeles and California.
Hudson Pacific Properties is shuttering most of its Quixote soundstage operations in Los Angeles, along with facilities in Georgia and New Mexico.
This decision is set to impact around 70 employees in Atlanta and Los Angeles, according to a source familiar with the situation.
This shift represents a change in direction for the company, which had been expanding rapidly during the streaming industry’s growth when the demand for production spaces surged across various U.S. locations.
Earlier this year, Hudson Pacific’s CEO, Victor Coleman, had already indicated a changing landscape in production patterns, pointing out that while Los Angeles and New York see increased activity, regions like Albuquerque, New Mexico, New Orleans, Louisiana, and Atlanta are experiencing declines. This was noted well before the latest layoffs.
Quijote confirmed to clients that it is beginning to wind down most operations in Los Angeles, including its main studio in West Hollywood. They acknowledged facing a prolonged period of stagnation in commercial, television, and film productions, ultimately prompting this tough call.
The company also manages vehicle fleets, production supplies, and sound stages across several states.
In Los Angeles, it will end leases on several properties, including the Quijote West Hollywood and the Quijote Central Valley Van Nuys, which had been associated with productions like NBC’s “The Office.” However, Griffith Park Studios will continue operating due to existing tenants.
Hudson Pacific acquired Quijote for $360 million in 2022 during its streaming expansion. Additionally, the company purchased Star Wagon in 2021 for $222 million to expand into production trailers and on-set services.
Since that time, demand for production has significantly dropped.
After years of rapid growth, studios and streaming platforms have cut back on spending, reduced episode orders, and adjusted production schedules. The count of original TV series has declined for three consecutive years, with 2025 premieres down 11% from 2024, according to Luminate.
Hudson Pacific anticipates saving between $21 million and $27 million annually through the downsizing of Quijote’s operations in Atlanta and by moving some equipment to Los Angeles and New York.
Even within California, the situation isn’t uniform. Mark Lamas, Hudson Pacific’s president, indicated that Hollywood stages are about 96% leased, while Quijote’s stages sit at only 53.3% leased.
“Quijote is making moves to step back from leased soundstages and markets with high costs and lower demand,” Lamas mentioned, emphasizing a focus on higher-performing aspects of their office portfolio and studio services.
This restructuring is part of a larger strategy by Hudson Pacific, which had previously written down the complete value of the Quijote division due to significant losses.
The company insists that its core services remain active.
“Quijote’s fleet of vehicles and equipment rentals will continue to support production needs,” stated Sean Griffin, Quijote’s senior vice president of sales. He also added that they’re taking a careful approach to ensure minimal disruption during this transition.
Interestingly, New Jersey saw the strongest production growth year-over-year in early 2026, while California continues to lead as the primary production hub, albeit with fewer projects than in prior years.
Hudson Pacific’s Sunset Studios in Los Angeles will still be an important asset, with Netflix committed as a tenant until 2031. The streaming giant is also reportedly close to finalizing a deal to acquire the historic Radford Studio Center, which could further consolidate production resources in Los Angeles, despite the industry grappling with reduced production volumes and series orders.
