Hollywood film production drastically declines as workers struggle to make ends meet

LOS ANGELES - Iconic studio lots are quieter than ever as film and television production in Los Angeles hits historic lows. 

As a result, thousands of workers in the film industry are struggling to make ends meet. To help resolve the issue, California Gov. Gavin Newsom proposed increased tax credits for productions that film in California.

PREVIOUS COVERAGE: Newsom proposes increased tax credits for TV, film production

‘Some of the lowest levels of production we ever observed’

What we know:

Los Angeles used to be the undisputed mecca of the film industry, but lately, legendary studio lots are looking more like ghost towns. 

"It is very tragic to see because that means that people are not working," said Philip Sokolowsky of Film LA. He's been tracking on location shoots and filming across greater Los Angeles has plunged. 

"What we've seen tragically in recent months is some of the lowest levels of production ever observed," he added. 

2024 ended as the second-slowest year for filming in LA, with only the year of the pandemic being worse. So far, 2025 isn't looking any better. Production is already down 22.4%. It's affecting thousands of people in the industry, like Bobbi Banks, a supervising sound editor. 

"I can just say for the last 18 months, I've only worked three out of those 18 months," Banks said. 

Insiders say they are scrimping and burning through their savings just to get by, hoping production will return to LA. But so far, it hasn't.

"The uncertainty for us is like, we don't know when we're gonna be working," Banks explained. 

 "Everyone’s moving their production facilities to cheaper states and cheaper locations, and really the global economy is just kind of swallowing us up," another Hollywood actor added. 

California Gov. Gavin Newsom is proposing a $750 million annual tax credit to keep jobs in LA and across California in order to be able to compete with other states and countries.

Peter Rotter, founder of Encompass Music Partners, is also calling for support in post-production. 

"What we need to do is we need to get some incentivized monies and pour back in and bring life back into this community," said Rotter.

The impact on local businesses 

Local perspective:

It’s not just those in the film industry who are struggling. Other local businesses are also being impacted.

"Everyone that has a small business in Burbank is concerned we might have to close because everything feeds off the entertainment industry and they're just not operating to capacity right now. And I would just like to ask our leadership, the governor, the mayor of LA, Film LA, just do whatever it takes. Do whatever it take to fix it," said Steve Hager, owner of Chili John’s in Burbank. 

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Newsom's $750M proposal under review

What's next:

Gov. Newsom’s proposal is under review by the state legislature. If it is approved, it will take effect on July 1st.