Major Studio Services Provider Quixote Pivots From Atlanta
The Hollywood Reporter • • entertainment
Key Points:
- Hudson Pacific is winding down its Quixote studio services operations in Georgia and New Mexico and laying off 70 staffers in Atlanta and Los Angeles due to a prolonged industry slowdown and declining production demand.
- Quixote, acquired by Hudson Pacific in 2022 for $360 million during the streaming content boom, provided equipment, vehicle rentals, and soundstage services but has faced underperformance with stage occupancy at just 53.3%.
- The decision follows a broader trend of major studios cutting content spending and reducing original series, leading to decreased filming activity in once-thriving production hubs like Georgia and New Mexico.
- Hudson Pacific plans to relocate select Quixote equipment to Los Angeles and New York, where stage occupancy is higher, aiming to save $21 million to $27 million annually and focus on more profitable studio and office segments.
- Quixote will maintain operational vehicle and equipment rentals during the phased wind-down to minimize disruption for clients, while exiting markets with structural cost or demand challenges.
