What’s happening to Hollywood? The mass exodus of a shrinking industry

When Yaani King Mondschein stepped onto the set of NBC’s “Quantum Leap” in February 2023, she had no idea it would be her last acting gig for several years. Mondschein had been called back to play “Frankie Cahill,” a recurring guest star featured in two episodes on the show. NBC filmed the episode at the Universal lot near Stage 4, on the backside of the hills where the Hollywood sign sits. The writer’s strike was looming but still hadn’t shut down most of Hollywood yet. By all accounts, it was a normal job in a long list of IMDB credits for Mondschein, which includes appearances in iconic TV shows like “Sex and the City” and “Law & Order.” Little did she know at that time, the industry was changing at breakneck speed. The “Quantum Leap” appearance was 115 auditions ago. She hasn’t booked a show since. What’s compelling about Mondschein’s situation is that it’s not unique to her. The number of on-location productions is plummeting in Hollywood, and it’s impacting every sector of the industry from talent to vendors and everyone in between. FilmLA, which tracks filming in the Southern California area, revealed on-location production in the greater Los Angeles area declined more than 22% from January through March 2025 compared to the same time last year. The organization found all major filming categories they track declined during that time. “This has never happened. We are all in a slump. I know a few people here and there who are working but for the most part we are all in the place of ‘I don’t know what’s going on.’ It’s the longest I’ve gone without working,” Mondschein told me. Behind the scenes While Mondschein is starving for creative work in front of the camera, Garret Blutter is wondering if his vending company can stay afloat. Blutter owns Hollywood Depot Rentals (HDR), a small business he built from the ground up in 2001. HDR rents walkie talkies, tables and chairs, trucks and vans and trailers – all of the pivotal supplies that ensure a smooth shoot. But when there’s a slowdown in Hollywood based productions, vendors are often hit first and hardest. Sales have dipped to unprecedented lows. Blutter expects his company will reach 50% of sales this year compared to their historical average. HDR has laid off half of the staff it used to employ. “Right now, it’s pretty much month to month. It’s all about staying afloat and riding out this storm.” The mass exodus of Hollywood filming The reshaping of Hollywood has many origin stories. In 2023, Hollywood was recovering from the economic impacts of the pandemic shutdown. Then the Writers Guild of America strike, followed by the SAG-AFTRA strike, halted productions for shows involving union workers for roughly seven months. “I think about what the industry has gone through over the last few years from the pandemic to the strikes to the disproportionate impact that the wildfires had on the entertainment industry. That is blow after blow,” said Los Angeles Mayor Karen Bass said Tuesday at a press conference. Competitive tax incentives from other states and countries have also slowly and steadily lured studios away from California. Georgia has drawn productions to the south with a competitive tax credit of up to an uncapped 30%. It’s where much of “Thunderbolts*,” the latest epic in the Marvel Cinematic Universe, was filmed according to the state’s tourism site. In California, companies are required to spend a minimum of $1 million dollars to qualify for tax incentives. In Georgia, there’s no minimum, which means smaller-budget films are also eligible for tax breaks. On other side of the border, Canada boasts a basic tax credit of 35% along with other incentives that have been reeling in productions for years. The dystopian show The Handmaid’s Tale was mostly shot in Canada, alongside a long list of movies and TV shows. While surrounded by more than a dozen representatives from unions and studios this week, Mayor Bass issued an executive directive to make it easier and more affordable to film in Los Angeles. This includes easier access for filming at iconic locations around the city, lowering location fees, and creating a more streamlined process for site approval. “While we push for the tax credits to be passed in Sacramento, we need to do what we can today to impact filming in Los Angeles,” she said. Bass’ efforts come on the heels of criticism levied by President Donald Trump. Earlier this month, he threatened to place a 100% tariff on movies produced outside the United States and imported into America. “The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States,” Trump wrote in his social media post. “Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!” The President’s statement on Truth Social left some confused as it’s not clear how such a tariff would be imposed. White House officials stated shortly after that ‘no final decisions’ have been made, and they are ‘exploring all options.’ In Cannes this week, speaking to a crowd while promoting his next film, Academy Award winning director Wes Anderson shared his bewilderment. “I’ve never heard of a 100% tariff before. Can you hold up the movie in customs? I feel it doesn’t ship that way.” Groups like the Motion Picture Association and other labor organizations have since asked President Trump to instead offer tax breaks to help bring more production back into the United States, with “a national approach and broad-based policy solutions.” California Governor Gavin Newsom also urged President Trump to pass a $7.5 billion federal tax credit. And despite a massive state budget deficit, Newsom proposed to expand the state’s film and TV tax credits last October, and allocate up to $750 million annually to the Film & Television Tax Credit Program. That would more than double its current investment of $330 million per year. Hollywood holdouts In the meantime, those who can economically survive in Hollywood, are holding out hope. “It’s become really hard to wait for the next job. There was a time when that was just a couple of months, you find a way to make it work. Now the gap is just too wide,” Mondschein admits. “There was a time when being a host or a server was the side hustle – the in-between thing I did between auditions. Now it’s become the main thing and auditions have become the side hustle. That’s a humbling feeling.” Despite the unrelenting grind, she says she’s not ready to give up on the creative outlet that feeds her soul. “I don’t know anyone that’s left [the business]. They’re all holding on to what we know it could be and what we’ve had. The magical moments.” Blutter feels the same way. “We’re hearing rumblings of other shows starting up so we’re hoping there’s going to be a tick up,” he said. In the meantime, Blutter said the vendor industry has become wildly competitive, with everyone competing for every dollar. So, he’s looking at potentially opening shops in other states where studios are filming. But for now, like Mondschein, he will stay in Hollywood, hoping it remains the entertainment destination of the world.