Congress Voices Concerns Over Hollywood Job Losses Amid Warner Bros. Acquisition

Lawmakers call on Netflix and Paramount to protect entertainment industry jobs in California.

Published on Feb. 6, 2026

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California lawmakers, including U.S. Sen. Adam Schiff and Congresswoman Laura Friedman, have expressed concerns about the potential impact of the proposed acquisition of Warner Bros. by Netflix or Paramount on jobs in the entertainment industry. In an open letter, they call on the industry giants to make 'concrete commitments to Californian and American workers' as the $72-billion deal could reshape Hollywood's landscape. With the industry already facing a slowdown and job losses post-COVID, the lawmakers fear major cuts from the acquiring companies could further impact the over 680,000 jobs supported by the entertainment industry in the region.

Why it matters

The entertainment industry is a major economic driver for California, contributing over $115 billion annually to the regional economy. Any significant job losses could have a devastating impact on the state's workforce and economy. Lawmakers are seeking assurances that the acquisition will not lead to widespread layoffs in the industry.

The details

Netflix and Paramount have been engaged in a bidding war to acquire Warner Bros. Discovery, with Netflix emerging as the frontrunner. However, both companies have projected significant cost-cutting measures, with Paramount planning to cut $6 billion in expenses over three years and Netflix projecting $2 to $3 billion in cuts. Analysts believe these cuts could have a major impact on the entertainment industry workforce. California has already seen a 13.2% drop in local production from July to September 2025 compared to the same period the previous year, building on the loss of 42,000 jobs in L.A. between 2022-2024.

  • In late 2025, Netflix won the bidding war for Warner Bros.
  • From July to September 2025, California saw a 13.2% drop in local production compared to the same period in 2024.
  • Between 2022-2024, Los Angeles lost 42,000 entertainment industry jobs.

The players

Adam Schiff

U.S. Senator from California.

Laura Friedman

U.S. Congresswoman from California.

Ted Sarandos

Co-CEO of Netflix.

Greg Peters

Co-CEO of Netflix.

David Ellison

CEO of Paramount Skydance Corporation.

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What they’re saying

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— Gordon Edgar, grocery employee (Instagram)

What’s next

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The takeaway

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