Hollywood is losing jobs, and Los Angeles is feeling it.

The entertainment economy is struggling as studios shed jobs through industry consolidation and film producers look outside California, CBS News reported. Mergers like Skydance's takeover of Warner Bros. Discovery and Paramount have led to cost cuts.

Many productions have moved to states with bigger tax breaks, like Georgia and New Mexico, or overseas to places like Britain and Hungary.

California is trying to fight back. On Sept. 19, Gov. Gavin Newsom signed Assembly Bill 2319, creating the state's first standalone tax credit just for post-production work, the New York Post reported. Post-production includes editing, sound and visual effects. The credit covers 35% to 50% of qualified California costs for picture editing and related work.

Advocates say the new credit will make California more competitive, LAist reported. But a federal production tax credit "may be the blockbuster," the outlet said.

President Donald Trump has proposed a federal film incentive, the Post reported. He has also threatened tariffs on movies made abroad.

Workers say the slowdown has hit hard. Crew members such as camera operators, set builders and editors depend on steady production. Many have struggled to find work since the 2023 writers' and actors' strikes and the pandemic.

California already expanded its main film tax credit last year. Supporters say it is starting to bring some shows back. Critics question whether tax breaks are worth the cost to taxpayers.

Whether Hollywood's slump is temporary or a lasting shift remains a major question for the region.

What we know: Hollywood jobs are disappearing as productions leave California, despite a new state post-production tax credit.
What we don't: Whether a federal production tax credit will pass.