Quixote Studios Closes Atlanta Operations, Cuts 70 Jobs Amid Production Industry Slump

Production services company Quixote Studios announced Tuesday that it is shuttering its Atlanta operations and laying off approximately 70 employees as part of a company-wide reorganization amid a sustained downturn in the production industry.

Parent company Hudson Pacific Properties will redeploy equipment from Atlanta to Los Angeles and New York, where its fleet, lighting and grip, production supplies, and communications rental services will continue operating.

Hudson Pacific Properties stated that these changes will be implemented over the coming quarters to minimize disruption for Quixote clients. The restructuring is expected to generate $21–$27 million in potential annualized cost savings.

Additionally, Quixote Studios will vacate most of its leased soundstage facilities in Los Angeles.

“Quixote’s fleet, equipment and supply rentals remain fully operational and ready to support production needs,” said Sean Griffin, Senior Vice President of Sales for Quixote, in a statement to TheWrap. “For clients of Quixote’s sound stage and Atlanta operations, we are taking a phased, collaborative approach to minimize disruption, while continuing to deliver a high level of service during this transition period.”

“We have been working with Quixote’s leadership to further streamline that business in alignment with our commitment to capital discipline and portfolio quality,” said Mark Lammas, President of Hudson Pacific. “Quixote is taking steps to move away from leased sound stages and markets characterized by structural cost or demand disadvantages, which will allow Hudson Pacific to focus financial and operational resources on our office portfolio and higher performing segments of our studio business.”

Hudson Pacific Properties has written down its entire investment in Quixote since acquiring the production services company for $360 million in 2022, citing heavy operating losses.