Quixote Shuts Down Big LA Soundstages Amid Hollywood Slowdown

A big Hollywood property firm is pulling back sharply from its Los Angeles studio business, cutting jobs and closing key soundstage sites. The decision comes after a period of rapid expansion during the streaming boom, when demand for production space was at an all‑time high. Now that studios and streamers are trimming budgets, the company is forced to tighten its operations. The firm will shut most of its Quixote soundstage facilities in Los Angeles and exit Georgia and New Mexico. About 70 workers in Atlanta and LA will lose their jobs. This reversal follows earlier warnings from the company’s CEO that production is shifting away from smaller markets like Albuquerque, New Orleans and Atlanta. Quixote’s own memo explained that it is “winding down most of our sound stage business in Los Angeles, including our main commercial studio in West Hollywood. ” The company says it has endured a long slowdown in film, television and commercial production. It will still keep its vehicle fleets, production supplies and some soundstages running. In Los Angeles the firm is closing leases at several sites, such as Quixote West Hollywood and its Van Nuys location, formerly known as Chandler Valley Center Studios. The only LA studio that will stay open is Griffith Park Studios, which already has a tenant.

Hudson Pacific bought Quixote in 2022 for $360 million, at the height of streaming growth. It also purchased Star Waggons in 2021 for $222 million, expanding into trailers and on‑set services. Since then production orders have fallen sharply. Original TV series premieres have dropped for three years straight, with an 11% decline expected in 2025 compared to 2024. The company expects $21 million to $27 million in yearly savings from reducing Quixote operations in Atlanta and moving some equipment to Los Angeles and New York. Even within California, the picture is uneven: Hollywood stages are 96% leased, while Quixote’s stages sit at just 53%. The firm says it is moving away from leased soundstages that have higher costs or lower demand, so it can focus resources on its office portfolio and the more profitable parts of its studio business. Core services such as fleet, equipment and supply rentals remain active. The company says it will work closely with clients to minimize disruption during the transition. While New Jersey is seeing strong production growth early in 2026, California still leads overall but with fewer shoots than before. Hudson Pacific’s Sunset Studios in Los Angeles remains a key asset, with Netflix as an anchor tenant through 2031.

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