Movies

VFX giant Technicolor lays off more than 200 workers in Culver City

BBG News

Known for creating stunning visual effects, motion graphics, and animation for many iconic Hollywood movies, the long-standing company called Technicolor Group is closing down its operations – this includes their bases in California as well.

The company has announced that it will be terminating employment for 217 staff members and shutting down its studio in Culver City, located on Lindblade Street, as stated in a document submitted to the Employment Development Department of California on February 24th.

Hollywood Inc.

Technicolor Creative Studios has leased a property in Culver City for the next eleven years, bringing together all their L.A. divisions under one roof at a new campus designed to house up to 350 employees.

Based in Paris, Technicolor manages businesses like The Mill, MPC, and Mikros Animation, which all carry out their activities within Los Angeles County.

This 110-year-old company, known for introducing color to movies, was instrumental in creating timeless films like “The Wizard of Oz,” the 1940 Disney movie “Pinocchio,” and “The Lion King.

Over the past few years, the company has been working to shift away from its heavy focus on films and align with the ongoing digital transformation. By 2022, Technicolor established an expansive facility in Culver City to manage the increasing need for physical effects from streaming platforms.

However, the movie business isn’t without its hurdles; it’s faced issues like the COVID-19 outbreak, labor disputes in Hollywood, and the emergence of advanced AI technology.

In an email to staff on Monday, Caroline Parot, CEO of Technicolor, acknowledged that the company is facing financial challenges. She attributed these struggles to the ongoing global pandemic and a screenwriters’ strike that persisted for a staggering 148 days in 2023.

In her recent memo, which The Times obtained, she mentioned that for several months now, our organization has faced challenges stemming from multiple aspects and has felt the impact of adverse external conditions as well.

According to her, the company hasn’t managed to secure new investors and has instead sought assistance from the French Court of Justice by filing for a “rehabilitation process,” which is intended to help Technicolor remain financially stable.

Technicolor Group didn’t respond to a request for comment.

Apart from its base location, this company extends its operations to significant urban areas across North America, Europe, and the U.S., focusing on industries such as media, entertainment, advertising, and gaming.

In the United Kingdom, the company Technicolor has entered into a legal procedure known as “administration,” which is used when a business can no longer meet its financial obligations. As a result, approximately 440 employees have been let go, according to the BBC’s report.

In light of Technicolor’s impending collapse, some studios have sought alternative paths for survival. As per Variety’s earlier reports, visual effects artists from The Mill are partnering with Dream Machine FX to establish a new company named Arc Creative.

As a true movie enthusiast, these recent days have been an emotional rollercoaster: shock, anger, sorrow, worry, and finally determination. Those who once worked at the Mill shared this sentiment with Variety in a statement, “While the Mill as we’ve known it is now closed, its essence, its fervor, and its enduring legacy continue to thrive through its incredible and gifted individuals.

Mikros Animation, Dream Machine FX and the Mill didn’t respond to a request for comment.

Since its founding in 1915, Technicolor Group has experienced multiple shifts in leadership. Based on LinkedIn data, the company is estimated to have over 14,600 employees.

In 2020, Technicolor exited bankruptcy, and since then, they’ve been selling various aspects of their company. For instance, in 2021, they sold their postproduction unit, Technicolor Post, for approximately $36.5 million.

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2025-02-28 00:31

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