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

Cerys Davies, Los Angeles Times on Feb 6, 2026

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California lawmakers are expressing concern about how the future of Warner Bros. Discovery could affect Hollywood's workforce.

In an open letter addressed to Netflix Chief Executives Ted Sarandos and Greg Peters and Paramount Skydance Corporation CEO David Ellison, U.S. Sen. Adam Schiff, D-California, and Rep. Laura Friedman, D-California, call for the industry giants to make "concrete commitments to Californian and American workers."

Late last year, Netflix won the highly anticipated bidding war for Warner Bros, which would give the streamer control over Warner Bros.' storied Burbank film and TV studios, HBO and HBO Max. The pending $72-billion deal would greatly reshape the Hollywood landscape. Separately, Paramount has continually thrown in counter-bids and has been consistently rejected.

With all of these moving pieces, there's a bipartisan fear among the nation's lawmakers about how the acquisition could affect jobs in the U.S. entertainment industry . As stated in the letter, the industry "supports more than 680,000 jobs and contributes over $115 billion annually to the regional economy."

Given the slowdown the industry has seen post-COVID and the growing number of international productions, Los Angeles film activity was down 13.2% from July through September 2025 when compared with the same period last year. This downward trend continues to build on the loss of 42,000 jobs in L.A. between 2022 and 2024.

Ellison and Sarandos have made arguments for why they believe their respective companies are best positioned to take over Warner Bros.

But each deal comes with major cuts. Paramount is projected to slash $6 billion in expenses over three years, and Netflix is projecting to cut $2 billion to $3 billion. Some analysts believe these cuts will have a significant effect on the workforce.

Previously, Ellison said, "We believe that what we are offering is better for Hollywood. It's better for the customers and it's pro-competitive."

Sarandos is also quoted in the letter saying: "We think it's great for consumers. We think it's a great way to create and protect jobs in the entertainment industry."

Earlier this week during a Senate subcommittee hearing, Sarandos said Netflix plans to increase its film and television production spending to $26 billion this year, with a majority of that happening in the U.S.

The lawmakers' letter raises a series of questions surrounding the livelihood of creators, the use of AI and "concrete steps" about preserving jobs in L.A. Schiff and Friedman also offer the CEOs an opportunity to meet with them to discuss their answers.

In an effort to ensure "America continues to lead the world in the creative economy," the letter said that Congress is currently working on bipartisan legislation that would establish a federal film tax incentive. It will be modeled after state programs in California, Louisiana and Georgia.

"We view this as a tool to not just protect but encourage more domestic filming and sustainable job creation on American soil," wrote the lawmakers.