Shockingly, global VFX Giant Technicolor has abruptly shut down, with over 10,000 artists worldwide losing their jobs overnight.
Known for its production, visual effects (VFX), and animation for huge iconic films such as Disney’s Mufasa: The Lion King, The Wizard of Oz, Pinocchio, Breakfast at Tiffany’s, The Jungle Book, and many more favorites, news of Technicolor’s closure is beyond staggering.
Technicolor has over 109 years in the business at the forefront of cinema. It was founded in 1912 by MIT professors Dr. Herbert T. Kalmus, Dr. Daniel F. Comstock, and self-taught mechanical engineer W. Burton Wescott. The group’s innovations from redesigning camera and printing processes to the introduction of color as well as many firsts. In 1927 it produced the first theatrical feature film to incorporate sound with The Jazz Singer. Its partnerships with Disney and Warner Bros. through the three strip Technicolor process and animated films solidified royalty status and put the company in the vanguard of filmmaking.
The list of well-known films that the Technicolor group has been involved in over 109 years is a full-fledged legacy. However, Technicolor is also the parent company of production and visual effects (VFX) studios such as The Mill, MPC, and Mikros Animation. As a whole, Technicolor operates in many major cities around North America, Europe, Asia, and beyond. It even had entire divisions for video games with Technicolor Games and advertising through their various studios.
The reach of Technicolor both around the world and into multiple industries means that its abrupt closure and layoffs have affected many. India’s News9 shared a heartbreaking report that more than 2,000 employees in India are facing severe financial distress.
“Across the global VFX and animation industry, more than 10,000 artists have lost their jobs overnight with over 2,000 employees in India now facing Financial distress. Their salaries remain unpaid and the company has offered no clear communication or support despite the massive layoffs.”
In the News9 broadcast, Biren Ghosh, head of Technicolor Global, said that India’s leadership team was “brought to the stage of finality alongside all of you.” Ghosh describes receiving an email out of the blue that the Technicolor headquarters in Paris was shutting down all operations with no advance notice or warning.
The sudden news was delivered to employees via a memo from Technicolor group CEO Caroline Parot. American entertainment trade magazine Variety was first to report the memo in full:
Dear Team,
As we have communicated over the past months, the Group has been experiencing difficulties linked to a variety of factors and has not been spared from external headwinds: the difficult operational situation resulting from post-COVID recovery, a costly and complex separation from the previous group followed by the writers’ strike leading to a slowdown in customer orders causing severe cash flow pressures.
Today, the company must face reality. Due to inability to find new investors for the full Group, despite extensive efforts, Technicolor Group has filed for Court “recovery procedure” before the French Court of Justice to give a chance to enable to find solutions.
In each country, the appropriate framework for orderly protection and way forward is currently being put in place to allow, when possible, to remain in business continuity.
This decision was not taken lightly; every possible path to preserve our legacy and secure the future of our teams will be thoroughly explored to offer a chance to each of its activity to be pursued with new investors.
Technicolor is more than just a company, it is a community of talented, passionate, and creative individuals who have brought some of the most iconic visual experiences to life. The work we create together demonstrates our dedication and artistry and defines Technicolor.
As we move forward, our priority is to support you through this transition. Given the complexities of labor laws and regulations across the different countries in which we operate, this process will be conducted on a country-by-country basis, ensuring compliance with local frameworks, and providing the necessary support for each of you.
We recognize that this is an incredibly difficult moment, and we are here to support you in any way we can.
In each of your countries, you will receive a dedicated email in relation to your situation in due time.
With deepest appreciation and respect,
Caroline Parot
From heartbreak to the over 10,000 affected workers to the devastation across film, video games, and advertising, Technicolor’s closure will be felt around the world.
Image credits: Video by India New9
Source link
