Studios' Grosses Up; Jobs Down
Hollywood's film studios may have enjoyed record-breaking grosses at the box office last year, but that did not deter them from cutting about 9,000 jobs, according to a report issued today (Thursday) by the Los Angeles County Economic Development Corporation. The semi-official agency attributed the job losses primarily to so-called runaway production, lingering labor issues and an overall decline in revenue sustained by the corporate parents of the major studios. "Most of the studios are part of media cong lomerates, most of them have been exposed to the downturn in advertising," Jack Kyser, founding economist of the LACEDC, told Reuters. In its report, the LAEDC forecast that in 2010, "the media industry will continue to struggle, reflecting a slow rebound in advertising and changes in the way consumers access information."