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Hudson Pacific Properties is jettisoning a portion of its struggling Quixote production and soundstage business.
HPP will shed leased soundstages and cease operations in the Atlanta area, the REIT announced Tuesday.
The wind-down will translate into 70 layoffs in LA and Atlanta, according to the Hollywood Reporter.
New Mexico and Georgia saw dips in filming count and production spend to start 2026, THR reported. The number of films shot in Georgia fell by 11% year-over-year in January, while 29% fewer films were shot in New Mexico.
Leased soundstages affected in the LA area are Quixote West Hollywood and Quixote Central Valley in Van Nuys. Quixote also leases Griffith Park Studios but will keep that location, which has an ongoing tenant, according to THR.
Hudson Pacific leadership said it has been working with Quixote to maximize efficiency at the business. The changes will materialize over the next few quarters and are expected to yield $21M to $27M in savings.
"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 President Mark Lammas said in a statement.
Hudson Pacific bought Quixote in 2022 for $360M. The business has struggled as the larger film and television production industry has since then.
When Hudson Pacific’s fourth-quarter 2025 earnings included an announcement of a net loss of $277.9M, the REIT laid part of the blame at Quixote’s feet. HPP CEO Victor Coleman had previously targeted the first quarter of this year as a break-even point for the company.
Hudson Pacific’s first-quarter 2026 earnings are scheduled for May 7.
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