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Quixote Studios Shutters Atlanta and Los Angeles Soundstage Businesses

BusinessEntertainment4/28/2026
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Quixote Studios is closing its Atlanta production services and winding down its Los Angeles soundstage operations, resulting in about 70 layoffs. The move, by parent company Hudson Pacific Properties, is expected to save the company up to $27 million annually. Hudson Pacific is refocusing its production services on Los Angeles and New York while retaining a separate, highly leased portfolio of soundstages.

Facts First

  • Quixote Studios is closing its Atlanta production services business and winding down its Los Angeles soundstage operations.
  • Approximately 70 people will be laid off across Atlanta and Los Angeles.
  • Parent company Hudson Pacific Properties wrote down the entire value of its Quixote unit due to heavy operating losses.
  • The cost reductions are expected to save between $21 million and $27 million annually.
  • Hudson Pacific is retaining its separate Sunset Studios portfolio of Los Angeles soundstages, which are 96% leased to Netflix and others.

What Happened

Quixote Studios announced it is shuttering its Atlanta-based production services business and winding down its soundstage business in Los Angeles. The changes will result in layoffs for approximately 70 people in those two cities. Parent company Hudson Pacific Properties... has written down the entire value of the unit due to heavy operating losses. The company is also relinquishing Quixote-branded soundstage properties in Pacoima, Panorama City, and West Hollywood, which had an occupancy rate of 53.3% last year.

Why this Matters to You

If you work in the film and television production industry in Atlanta or Los Angeles, this consolidation may reduce your local job opportunities and available studio space. For residents near the affected properties, the relinquished soundstages could lead to changes in local commercial activity. The company's refocusing on its more successful Sunset Studios portfolio and its Los Angeles and New York services businesses suggests a strategic shift within the industry that may affect where major productions choose to base their operations.

What's Next

The planned cost reductions are expected to save Hudson Pacific between $21 million and $27 million annually. The company is retaining its Atwater Village location in Los Angeles and refocusing its production services business on Los Angeles and New York. Hudson Pacific's separate Sunset Studios soundstage portfolio... remains operational. Separately, Netflix is believed to be nearing a deal to acquire the Radford Studios lot in Studio City.

Perspectives

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Company Executives admit the Quixote deal was "obviously, clearly it was not the best deal we’ve ever done," but maintain that the company is "doing okay" overall.
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Company Executives explain that divesting from Quixote allows the firm to pivot away from markets with "structural cost or demand disadvantages" to focus on their office portfolio and higher-performing studio segments.
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Company Executives express confidence in asset alternatives that could result in the value being "zero or at least flat at the end of the year."
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Company Executives contend that primary markets like Los Angeles and New York are outperforming second-tier hubs like Atlanta and Chicago, which they describe as "much more depressed."
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Company Executives suggest that the availability of tax credits in Los Angeles and New York has served to "enhanced the production flow" in those specific markets.