Mass Layoffs Hit Avengers Doomsday Production Company as Russo Brothers Cut 15% of Staff

While Marvel Studios is increasing activity on the upcoming Avengers: Doomsday, one of its main production companies is unexpectedly laying off a significant number of employees.

AGBO, the production company created by Joe and Anthony Russo, has announced layoffs affecting around 15% of its staff, or about 20 people, as reported by Deadline. This news comes while the Russo brothers are working on a large-scale Marvel movie, leading to discussions about the company’s focus, its size, and the financial challenges facing big-budget films in Hollywood.

Although AGBO calls it a “restructuring,” these layoffs, nicknamed “Avengers Doomsday,” happen right as Marvel is ramping up its biggest production schedule since the release of Avengers: Endgame.

AGBO Confirms Layoffs Amid “Realignment”

According to Deadline, AGBO had over 130 employees before the recent layoffs. Around 20 people lost their jobs, primarily in middle management positions.

The company hasn’t said which departments were affected by the changes, and has only described the move as a restructuring meant to ensure the studio’s future success.

Over the last two years, Hollywood has increasingly used this kind of language as both major and smaller studios try to scale back the rapid growth they pursued during the height of the streaming competition.

The Awkward Timing of the Avengers Doomsday Layoffs

What makes this round of layoffs particularly notable is when they occurred.

Joe Russo is producing Avengers: Doomsday, Marvel Studios’ upcoming big team-up movie, scheduled to come out December 18th. This film is Marvel’s effort to revitalize the Avengers franchise, which has faced challenges with decreasing fan interest, unpredictable box office numbers, and growing doubts about where the series is headed after Endgame.

As a film fan, it’s really concerning to see a studio – one with over 130 people working there – laying off 15% of its staff, especially while they’re also involved in making one of the costliest movies ever. It just highlights how messed up the financial side of Hollywood has become, and how out of whack things are behind the scenes.

A Studio Built on Blockbusters, Now Pulling Back

As a huge movie fan, I’ve noticed AGBO is behind some absolutely massive hits from the last few years – I mean, they did Avengers: Infinity War and Endgame, which were just box office juggernauts! But they’re not just about theaters anymore. They’ve also made a real splash on streaming, especially with Netflix. Movies like The Gray Man and the Extraction films have been really popular on the platform, doing incredibly well by Netflix’s own measurements.

Despite its past successes, the studio is now cutting costs, signaling that simply making bigger and bigger films isn’t a reliable strategy when movie budgets are increasing faster than ticket sales.

These job cuts indicate AGBO likely grew too quickly for the amount of work it currently has, which is a common issue for production companies like the Russo Brothers’.

Hollywood’s Middle Management Problem

A common trend in recent entertainment layoffs is the elimination of middle management positions. During the rapid growth of streaming, studios created many layers of management and support staff to handle a huge demand for new content. Now, with that demand slowing, these roles are being cut.

With fewer projects and opportunities available, these positions are now often seen as unnecessary.

The recent layoffs at Avengers Doomsday seem to confirm a larger trend in Hollywood: a correction after a long period of growth, rather than a reaction to a temporary slump.

What This Means for Avengers: Doomsday

While the recent layoffs aren’t expected to immediately halt production of Avengers: Doomsday, they do reveal how vulnerable the support system for Marvel’s future projects currently is.

Marvel Studios is counting on Avengers: Doomsday to be a major success, showing everyone that the franchise is still relevant and exciting. However, recent layoffs at one of their key production companies raise concerns that the studio’s internal confidence might not match the positive image they’re presenting.

Another Warning Sign for the Blockbuster Model

Ultimately, the AGBO layoffs are less about one studio and more about the industry at large.

Even successful franchises with huge reputations and proven box office numbers aren’t safe from cutbacks. The news that a studio connected to one of Marvel’s most popular characters is laying off employees highlights just how much more cautious Hollywood has become about taking risks.

With the progress of Avengers: Doomsday, the movie isn’t just facing pressure to satisfy fans – it’s also carrying the financial concerns of a film industry that’s still recovering from past overspending.

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2026-01-29 00:58