Paramount relocation could cost California 58,000 jobs

A preliminary report by the Los Angeles County Economic Development Corp.’s Institute for Applied Economics warns that Paramount could cause significant economic damage to California if it relocates its headquarters and operations. The analysis suggests a potential loss of between 28,990 and 57,980 full-time jobs and an annual economic output reduction of $10.6 billion to $21.2 billion.

The threat of relocation follows an antitrust legal battle involving a coalition of 12 Democratic state attorneys general, led by California Attorney General Rob Bonta, who are seeking to block Paramount’s proposed merger with Warner Bros. Discovery. Paramount has indicated it may move operations to states such as Georgia, Tennessee, or Texas if the deal is halted.

The study notes that these figures represent a worst-case scenario and include direct, indirect, and induced jobs across various industries. Conversely, the report suggests that if Paramount successfully acquires Warner Bros. and fulfills commitments to release 30 films annually in theaters, it could create up to 2,760 jobs and generate over $1 billion in economic benefits for the state.