Production services company Quixote Studios is shuttering its Atlanta operations and laying off roughly 70 employees as the company reorganizes amid the ongoing downturn in production, the company announced Tuesday.
Parent company Hudson Pacific Properties will redeploy equipment from Atlanta to Los Angeles and New York, where its fleet of lighting and grip, production supplies and communications rental services will continue operating.
Hudson Pacific Properties added that these actions will take place over the coming quarters to minimize disruption for Quixote clients. The move is aiming to land $21-$27 million in potential annualized cost savings.
Quixote Studios will also 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,” Sean Griffin, SVP of Sales for Quixote, said 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,” Mark Lammas, president of Hudson Pacific, added. “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 the entire value of its Quixote investment since acquiring the production services company for $360 million in 2022, citing heavy operational losses.
