Former Sony CEO Returned to Hollywood and Said Five Words That Will Haunt Gavin Newsom

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For a century, young Americans packed everything they owned and drove to Los Angeles to make something of themselves.

Today that same city is delivering a lesson nobody in Hollywood ever put in a script.

What replaced those dreams – and who is really paying for it – is a story that Democrats don’t want told.

Hollywood Job Losses Hit a New Record While the People Responsible Are Still Employed

Michael Lynton spent over a decade running Sony Pictures Entertainment – the studio behind Ghostbusters and Tootsie and some of the most profitable films in Hollywood history.

He recently returned to his old industry and described what he found: an economy gone quiet, nothing moving, an industry that had stopped humming.

The former studio exec called Los Angeles "the sunny version of Detroit."

He wasn't exaggerating.

While the rest of America added jobs last month, Hollywood's film and music sector lost another 3,600 positions – dropping to its lowest employment level in recent years.

The rest of the country is hiring.

The Wall Street Journal used federal Labor Department data to document a 30% collapse in employment for the workers who actually make movies – the set builders, the crew, the sound mixers, and the hundreds of craftspeople whose names scroll at the end of a film and have nothing to do with executive compensation.

Los Angeles production measured in on-location shoot days went from 36,792 in 2022 to just 19,694 last year – a near-46% collapse in actual filmmaking activity on the ground.

Sen. Adam Schiff, a California Democrat, held a congressional hearing in Burbank this past March specifically because 42,000 entertainment jobs have vanished from LA County in two years.

The people losing those jobs are not the studio executives who approved the scripts and hired the directors.

They are the below-the-line workers – the crews, the set builders, the sound editors – who made up Hollywood's middle class.

IATSE, the union representing those workers, testified before Congress that its members have lost 45 million hours of work since 2022.

Over the same period, the U.S. share of global production collapsed from 52% to 38%, with the biggest productions now filming in London or Eastern Europe.

The work didn't disappear – it moved.

Britain can cut production costs by roughly 50% compared to California once tax incentives factor in.

Vienna scores the same film for roughly a third of what Los Angeles charges.

Bratislava scores it at 90% less.

Studios that spent years staging awards-show lectures about corporate greed are shipping middle-class jobs to Eastern Europe to protect their own margins – the exact same trade the auto industry made before Detroit became a punchline.

Woke Hollywood Burned Billions on Snow White and Supergirl and Now Wants a Federal Bailout

Hollywood's answer to this crisis is a congressional hearing and a federal tax incentive package.

The same executives who spent a decade making movies that insulted half their potential audience are now asking American taxpayers to bailout the industry they wrecked.

Snow White lost an estimated $170 million in 2025 after its star spent months trashing the film's source material and the audience that grew up loving it.

Warner Bros. just ran the same play with Supergirl – spending $290 million total while the star used the promotional tour to announce the film was better because it didn't center around a man.

The studio blamed sexist fans.

OutKick's verdict was blunt: hypocrisy, politicization, activism, and short-sighted policy – Hollywood did this to itself.

Gavin Newsom, who counts Hollywood's biggest donors among his most reliable allies, proposed doubling California's film tax credit from $330 million to $750 million in 2024.

Production kept declining anyway.

Newsom's California cannot compete with Eastern Europe on costs and refuses to compete with Georgia and Texas on business climate.

So the jobs keep leaving.

Detroit still has the headquarters and the brands.

The manufacturing jobs – the ones that sustained a middle class for generations – left for places with lower costs and fewer regulations, and most of them never came back.

Hollywood still has the Oscars, the studios, and the celebrity press junkets.

The grip who hasn't worked in eighteen months doesn't get invited.

An industry that spent years telling Americans what to think about race, sex, and politics is now asking those same Americans to subsidize its survival.

The audience already delivered its verdict at the box office.

Washington shouldn't overrule it.


Sources:

  • Staff, "Hollywood Disaster: Jobs Crater By 30% As LA's Entertainment Industry Destroys Itself With Politics," OutKick, April 2026.
  • Mike LaChance, "Woke Hollywood Is Losing Jobs as the Rest of the Country Continues Expanding Employment," The Gateway Pundit, July 4, 2026.
  • Staff, "New York Times Blames 'Misogyny,' Fans for 'Supergirl' Flop After Disastrous Opening Weekend," Fox News/OutKick, June 2026.
  • Wall Street Journal, "See How Hollywood's Job Market Is Collapsing," April 2026.

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