In the wake of significant upheaval in the entertainment industry, the landscape of Hollywood is once again being called into question as crucial union negotiations approach. With a staggering 17 percent decline in entertainment employment reported in the Los Angeles area over the past six months and billions lost in economic activity for California, the industry is bracing for what might come next. The memories of the dual writers’ and actors’ strikes from three years ago still loom large, prompting many to reconsider the stability of their jobs and the viability of their unions.
As 2026 negotiations draw closer, SAG-AFTRA is set to begin discussions on February 9, with the Writers Guild planning its negotiations starting on March 16, and the Directors Guild following suit on May 11. These discussions come at a time when the Hollywood workforce has been struggling, with reports indicating a 25 percent drop in entertainment jobs in Los Angeles in 2025 compared to three years prior.
This contraction has been exacerbated by corporate consolidation, as evidenced by Paramount’s announcement to cut 2,000 jobs after merging with Skydance, alongside the potential acquisition of Warner Bros. by Netflix, which could threaten thousands more positions. The industry appears to be at a crossroads, with key players contemplating whether the current hardships will temper the aggressive posturing typically seen during contract negotiations or if they will provoke stronger demands.
One prominent talent attorney suggests that the industry’s current woes may encourage a more collaborative approach to negotiations. “Our industry is reeling,” they commented, suggesting that both studios and talent cannot afford to be combative at this time. Conversely, some industry insiders believe that the rise of artificial intelligence poses an existential threat to unions, prompting a push for enhanced protections established in the previous contract discussions. “It’s going to be a big fight. This is make-or-break for guilds,” said noted entertainment lawyer Schuyler Moore.
SAG-AFTRA leaders are optimistic, allowing ample time for negotiations before their contract expires on June 30. Chief negotiator Duncan Crabtree-Ireland has expressed confidence in reaching a fair deal, though he acknowledges that a strike remains a possibility. Meanwhile, the Writers Guild faces a tighter timeline, as their contract ends May 1, leading to concerns given their history of aggressive negotiation tactics. The Directors Guild, although also facing deadlines, is known for its willingness to engage more diplomatically.
Health plan funding will take center stage during negotiations, as both the WGA and DGA have reported significant financial losses in their health plans over the past two fiscal years. Cost-of-living adjustments are expected to be part of the discourse, as union members are increasingly struggling to meet health care qualifications.
As the likelihood of AI impacting the industry grows, substance over flash is on the minds of union leaders. SAG-AFTRA seeks to ensure that performing artists generated by AI are compensated similarly to human actors, with the goal of preserving job opportunities. Moreover, adjustments to casting processes and enhanced income requirements will headline SAG-AFTRA’s agenda.
The WGA is poised to tackle longstanding grievances regarding “free work,” advocating for new regulations to protect writers from being expected to perform unpaid labor during the job application process. Meanwhile, employers are reportedly considering longer-term agreements, such as five-year contracts, which could herald a new era in labor relations, though any significant shift would necessitate enticing concessions from unions.
As negotiations commence, the overarching theme among union leaders is a focus on collaboration and constructive dialogue rather than conflict. As SAG-AFTRA board member Jason George emphasized, the objective is to identify mutual challenges and work towards solutions that benefit all parties involved.
This crucial period for Hollywood is undoubtedly pivotal, not just for addressing immediate concerns but for shaping the future of labor relations in an evolving entertainment landscape.