Hollywood on Lockdown: How L.A. Quickly Lost 14,000 Entertainment Jobs as the Pandemic Spread

Rachel Uranga

Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.

Hollywood on Lockdown: How L.A. Quickly Lost 14,000 Entertainment Jobs as the Pandemic Spread
upload.wikimedia.org

Hollywood, an economic engine that has powered Los Angeles since the dawn of television screens and movie cameras, has been devastated by stay-at-home orders. With production at a standstill and sports halted, mass layoffs and unemployment have stopped the show.

Studios, theaters, production companies and entertainment venues have laid off or furloughed more than 14,000 workers in Los Angeles County over less than two months, according to state filings. The April and May records reflect only a sliver of the job losses in the entertainment industry, but they provide a window into just how widespread the pain has been felt by workers from Disney to independent production studios and sports networks.


One of the hardest hit employers, according to documents from the state's Economic Development Department, was the Los Angeles office of Fox Sports Productions, where 3,595 people were temporarily laid off at the end of April. The Labor Department reported Thursday national filings for unemployment claims totaled just shy of 3 million for the most recent reporting period, bringing the total to 36.5 million since the pandemic forced states into lockdown.

At Paramount Pictures, a subsidiary of ViacomCBS, 638 people were furloughed in late April and early May.

The long list also includes Sony Pictures and NBCUniversal. Even one of Tinseltown's strongest unions, the 160,000-member Screen Actors Guild-American Federation of Television and Radio Arts, had to temporarily let go of 27 workers.

A look at some of the production companies that experienced temporary layoffs in April and May.

In mid-March the International Alliance of Theatrical Stage Employees, which includes cinematographers and other below-the-line Hollywood workers, said at least 120,000 of their 150,000 members lost jobs.

All told, it's been a serious economic blow to the region. Last week Mayor Eric Garcetti said he is creating a working group to reopen industries including film and television.

The entertainment industry not only defines Los Angeles in the national imagination, but according to the Otis College Report, it employs around 258,000 people and fuels about a quarter of the region's economy - from the talent in front of the camera to the florists, caterers and lighting crews that serve the industry.

The data doesn't reflect the many contractors the Hollywood machine depends on, including writers, performers and others that work on on a project-by-project basis, noted Gene Del Vecchio, author of Creating Blockbusters and an adjunct professor at USC Marshall School of Business.

"When you look at studio layoffs, you're looking at a fraction of the people that have been hit," he said.

Between mid-March and June, Del Vecchio estimated that with theaters closed, Hollywood could lose about $3.8 billion at the box office.

"Where does that money go? Most of it goes to pay independent production companies. Even those hire a lot of independent contractors. All those people that we are talking about are flying under the radar."

FOX Sports Skybox: back and bettermedia.defense.gov

The state's data also doesn't include companies with fewer than 75 employees, or those that have yet to report. The latter includes Disney, which has said it will pink-slip 100,000 workers - nearly half its workforce, as all of its theme parks — save the slowly reopening Shanghai park — remain closed. The future of the Happiest Place on Earth is murky, with most analysts thinking its corporate might will help it to weather the crisis, but with little clarity about how long the pain will last.

Released daily, the state filings offer a window into the depth of the crisis in the city that can't be gleaned from local unemployment number, which lag behind national figures. California won't produce detailed county-specific unemployment data for March until next Friday.

"There are so many people that live off of Hollywood," said Ivette Rodriguez, founder of American Entertainment Marketing, a Venice-based public relations firm specializing in film and music for the Latin market. Since stay-at-home orders took effect, her business has dried up.

"Right now you can't have conversations with studios," she said. "They are having their own troubles. It's a trying situation."

Although Rodriguez's business has stopped, her situation is unlikely to appear in any of the data as she hasn't collected unemployment or qualified for a loan.

File:Walt Disney Studios ParkWikimedia Commons

"There's a lot of independent people that do what I do that will never be counted," she said. "We service Hollywood."

Rodriguez, who has done publicity for films from Disney and Netflix including Roma, the Academy Award-winning film by director Alfonso Cuarón and more recently Call of the Wild, said she's trying to diversify her two-decade old business to gaming and other platforms.

The most vulnerable jobs in the industry have been "the jobs where people are on-site doing the actual production," media analyst Dan Rayburn told dot.LA. In February there were 1,091 local film productions, according to FilmLA. By March 20, the day filming was halted, there were zero.

When production first shut down, writing jobs were widely considered relatively safe, since writers' rooms could operate virtually; but Rayburn noted that writers are now being laid off, too, with less content set for production.

And things may get worse before they get better.

Pre- and post-production roles that have been done remotely since before the pandemic have also been viewed as safer, but as the pandemic wears on, the amount of content for those roles to work on will shrink.

"That may mean a new wave of job losses," observed Rachel McCallister, Chair of MPRM Communications, a public relations firm with clients across the entertainment industry.

As for when and and if the lost jobs will return, that remains anyone's guess: "Nobody knows, because we don't know when stuff will get back into production," Rayburn said.

Numerous efforts have emerged around Hollywood to dampen the carnage. Netflix, which is increasingly entrenching itself in Los Angeles, set up a $100 million relief fund in mid-March, some of which went to support ongoing support efforts from unions and nonprofits.

The streaming giant has been among the relative beneficiaries of the pandemic so far, blowing past expectations in its last earnings call as viewing has climbed amid Stay-at-Home orders. So, too, have major potential buyers of Hollywood productions like Amazon and Apple TV, who have ample resources to acquire content now and once filming resumes, noted Bill Allen, chief executive of the Los Angeles County Economic Development Corporation.

The imbalance between the relatively unscathed and the ruthlessly clobbered could permanently rejigger Hollywood's landscape.

"If it gets bad enough, you may see a company that is doing well in this environment, like Amazon and Netflix, you might find them starting to buy other companies," Del Vecchio said.

A second wave of the virus in winter, as some have predicted, would crush Hollywood, he said.

"What you are seeing now is terrible. What you could see in the fall will destroy the industry."

Do you have a story that needs to be told? My DMs are open on Twitter @racheluranga. You can also email me.

https://twitter.com/racheluranga
rachel@dot.la
LA’s Upgrade in Travel and NBA Viewing
Image Source: Los Angeles World Airports

🔦 Spotlight

Exciting developments are underway for Los Angeles as the city prepares for major upgrades in both travel and entertainment. The Los Angeles Board of Airport Commissioners has approved an additional $400 million for the Automated People Mover (APM) at LAX, increasing its total budget to $3.34 billion. This boost ensures the elevated train’s completion by December 8, 2025, with service starting in January 2026. For Angelenos, this means a significant improvement in travel convenience. The APM will streamline connections between parking, rental car facilities, and the new Metro transit station, drastically cutting traffic congestion around the airport. Imagine a future without the dreaded 30-minute traffic delays at LAX! The APM will operate 24/7, reducing airport traffic by 42 million vehicle miles annually and carrying 30 million passengers each year, while also creating thousands of local jobs and supporting small businesses.

Meanwhile, the NBA is also making waves with its new broadcasting deals. The league has signed multi-year agreements with ESPN, NBC, and Amazon Prime Video, marking a notable shift in media partnerships. ESPN will maintain its long-standing role, NBC returns as a network broadcaster after years away, and Amazon Prime Video will provide NBA games through its streaming platform. Starting with the 2025-2026 season, these deals will enhance the league's reach and revenue, aligning with the NBA's goal to expand its audience and adapt to evolving viewing habits. Whether you're catching the action on TV or streaming online, these changes promise to elevate the fan experience and bring more basketball excitement to Los Angeles.


🤝 Venture Deals

LA Companies

  • Pearl, a startup that makes AI-powered software that assists dentists in identifying cavities, gum disease, and other dental conditions, raised a $58M Series B funding led by Left Lane Capital with Smash Capital, and others also participating. - learn more

LA Venture Funds

  • Fulcrum Venture Group participated in a prior $3.5M Pre-Seed Round for Code Metal, a developer tools startup. - learn more
  • B Capital co-led a $12.5M Seed Round for Star Catcher, a startup that aims to develop a space-based grid that captures solar energy in space and distributes it to satellites and other space assets. - learn more
  • Mantis VC and Amplify participated in a $140M Series C for Chainguard, an open source security startup. - learn more
  • Prominent LA venture capitalist, Carter Reum and wife, Paris Hilton, participated in a $14M Seed/Series A for W, the men’s personal care brand from Jake Paul. - learn more

LA Exits


Download the dot.LA App

🤫 The Secret to Staying Fit at Your Desk: 6 Essential Under-Desk Exercise Machines

Health experts are sounding the alarm: our sedentary jobs are slowly killing us, yet we can't abandon our desks if we want to keep the lights on. It feels like we're caught between a rock and a hard place. Enter under-desk exercise machines – the overlooked heroes (albeit kind of goofy looking) of the modern workspace. These devices let tech professionals stay active, enhance their health, and increase their productivity, all without stepping away from their screens. Here are 6 fantastic options that will enhance the way you work and workout simultaneously.

DeskCycle Under Desk Bike Pedal Exerciser

This bike has nearly ten thousand five-star reviews on amazon. It works with nearly any desk/chair setup. It is quiet, sturdy and allows up to 40 pounds of resistance. If you are looking for an under-desk bike this is a fantastic option.

Type: Under-Desk Bike

Price: $180 - $200


Sunny Health & Fitness Dual Function Under Desk Pedal Exerciser

This under-desk bike is extremely quiet due to the magnetic resistance making it an ideal option if you work in a shared space. It doesn’t slip, has eight levels of resistance, and the option to work legs and arms. It’s about half the price of the DeskCycle bike making it a solid mid-range option for those looking to increase their daily activity.

Type: Under-Desk Bike

Price: $100 - $110


Sunny Health & Fitness Sitting Under Desk Elliptical

This under-desk elliptical comes in multiple colors if you really want to underscore that you are a quirky individual, in case an under-desk elliptical isn’t enough. This model is a bit heavy (very sturdy), has eight different resistance levels, and has more than nine thousand 5-star reviews.

Type: Under-Desk Elliptical

Price: $120 - $230


DeskCycle Ellipse Leg Exerciser

This under-desk elliptical is another great option. It is a bit pricey but it’s quiet, well-made and has eight resistance levels. It also syncs with your apple watch or fitbit which is a very large perk for those office-wide “step” challenges. Get ready to win.

Type: Under-Desk Elliptical

Price: $220 - $230


Daeyegim Quiet LED Remote Treadmill

If you have a standing desk and are looking to walk and work this is a fantastic option. This walking-only treadmill allows you to walk between 0.5 to 5 mph (or jog unless you have the stride length of an NBA forward). It is very quiet, which is perfect if you want to use it near others or during a meeting. You can’t change the incline or fold it in half but it is great for simply getting in some extra steps during the work day.

Type: Under-Desk Treadmill

Price: $220 - $230


Sunny Health & Fitness Foldable Manual Treadmill

This under-desk treadmill isn’t the most premium model but it is affordable and has an impressive array of features. It is a manual treadmill meaning it doesn’t need to be plugged in; it is foldable and offers an incline up to 13%. I personally can’t imagine working and walking up a 13% incline but if that sounds like your cup of tea, then I truly respect the hustle.

Type: Under-Desk Treadmill

Price: $150 - $200




Download the dot.LA App

🤠Musk Picks Texas and 🔥Tinder AI Picks Your Profile Pictures

🔦 Spotlight

Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

The selection process occurs entirely on the user's device, ensuring privacy and data security. Tinder doesn't collect or store any biometric data or photos beyond those chosen for the profile, and the facial recognition data is deleted once the user exits the feature. This new tool addresses a common pain point for users, as Tinder's research shows that young singles typically spend about 25 to 33 minutes selecting a profile picture. By automating this process, Tinder aims to reduce profile creation time and allow users to focus more on making meaningful connections.

In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

🤝 Venture Deals

LA Companies

LA Venture Funds

LA Exits

  • Penguin Random House agreed to acquire comic book publisher Boom! Studios from backers like Walt Disney Co. - learn more

Download the dot.LA App

RELATEDEDITOR'S PICKS
Trending