Merger of Paramount and Warner Bros. Discovery puts 2,500 county jobs at risk

A Los Angeles County report estimates that the $111 billion Paramount-Warner Bros. Discovery merger could eliminate 2,500 jobs in the county and 6,000 positions worldwide. The County Department of Economic Opportunity calculated that corporate, technology, and real estate roles face the highest risk because of overlapping functions at the two studios.

The combined company carries an $82 billion debt load and aims to achieve $6 billion in savings by consolidating those positions.

Debt and production concerns The report noted that only one of the 19 films scheduled for release last year by either studio was primarily produced in California. Department director Kelly LoBianco said the findings show the entertainment sector remains in a fragile recovery.

Economist Adam Fowler of CVL Economics stated that Los Angeles is not positioned to capture much of any future increase in output from the merged company.

Regulatory and local response Federal antitrust regulators cleared the merger this month without requiring concessions. A group of states, including California and New York, is preparing a lawsuit to challenge the deal. The county report recommended that officials contact the new company to seek commitments on local hiring and consider tax credits or streamlined permitting to support production in the area.