Live Updates: Technicolor Implodes; Thousands Of Indian VFX And Animation Workers Won’t Be Paid For The Month Of February
A lot of people in the vfx and animation industries have been on edge this weekend as word spreads that Paris-based vfx conglomerate Technicolor Group is on the brink of total collapse. The entire company could shut down as early as Monday, the company’s CEO Caroline Parot has warned, leaving thousands of vfx and animation workers around the globe could become unemployed as a result.
The likeliest scenario at this point is that certain Technicolor studios and offices will shut down while others will restructure through bankruptcy proceedings.
Please refresh this page for the latest updates. This story is developing quickly and we are reporting new information as it becomes available, with the latest updates at top.
FRIDAY, FEBRUARY 28, 12:38PM PT: After Technicolor’s collapse over the past week, the financial health of other vfx conglomerates is likely to be scrutinized more closely. In recent corporate filings in the U.K., Cinesite, which operates over a dozen studios around the globe, reported that it had lost $29 million in its 2024 fiscal year. We offer more details at this link (or click on the image below):
FRIDAY, FEBRUARY 28, 10:15AM PT: A petition demanding justice for the thousands of unpaid Technicolor India workers has garnered over 2,650 signatures since being published yesterday. The petition asks the Indian government to not let the “exploitation of Indian citizens” go unnoticed. The petition adds:
Furthermore, as personally affected employees, the company has kept us in the dark about the handling of our Tax Deducted at Source (TDS). Not only were we not paid for our hard work, but the taxes deducted from our salaries seem to have never reached the government. This predicament has added to our distress, realizing the company’s utter disregard for upholding employees’ legal rights.
THURSDAY, FEBRUARY 27, 5:30PM PT: Per Technicolor’s WARN Act notice filed in California on Monday, February 24, the company laid off 217 employees in the state. The employees worked for The Mill, as well as for the Los Angeles offices of MPC and Mikros Animation.
THURSDAY, FEBRUARY 27, 1:35AM PT: The longtime chief of Technicolor’s India operations, Biren Ghose, told the studio’s former workers in India that they will not receive their salaries for any of the work they had done in February. The announcement was made in a video townhall on Wednesday that has been leaked online by a Youtube account called “The Cheated Animator.”
Ghose denied responsibility for the situation. He claimed in the video that the Paris headquarters of Technicolor, which he said was in charge of finances, had not told him about the severity of the company’s financial issues and that he was unaware Technicolor wouldn’t be able to pay its workers. Considering that Ghose is a key member of Technicolor’s leadership and had oversight of the company’s biggest studio, it would be quite scandalous if his version of events is true.
It is not known exactly how many people worked at Technicolor India, but by far, it had largest staff of any of their studios, because the group handled assignments from all of Technicolor’s other studios — MPC, The Mill, Mikros Animation, and Technicolor Games. Indian business site Moneycontrol reported that the India operation employed around 3,370 workers in February 2024. It is extremely likely then that there are thousands of workers who have each not been paid for three weeks of work.
In the video, Ghose asked workers to return their work-from-home workstations back to the studio. He also hinted that if workers took legal action (or “drastic action” as he put it) against the studio, it would hinder his ability to find solutions and continue the studio in another form.
If you worked at Technicolor in India, drop us a line HERE or comment on this post, and tell us what studio projects you were working on in February for which you won’t be compensated.
MONDAY, FEBRUARY 24, 2:55PM PT: Both the creative leadership and staff of The Mill’s U.S. operations have banded together to form a new company, Arc Creative, in partnership with Dream Machine FX, a collective of high-end vfx producers. The news was first reported by Variety, which offers more details on the venture.
Over 100 former U.S. Mill workers have joined the new company since finding out last Friday that their jobs were being eliminated by Technicolor. These people include The Mill’s creative directors, managing directors, vfx supervisors, executive producers, and numerous heads of departments. In a joint statement to Variety, they said:
It was a moment that stopped us in our tracks. It goes without saying, the past few days have been filled with emotions: shock, anger, sorrow, concern, and ultimately, resolve. While The Mill as we know it has shut its doors, its spirit, its passion, and its legacy live on through its amazing and talented people. After all, it was always the people that made The Mill truly special.
Arc Creative will focus on advertising, game cinematics, trailers, and other short-form work. It is familiar territory for the team as The Mill was largely focused on visual effects for advertising and brand experiences. The other vfx boutiques currently under the Dream Machine FX banner are Important Looking Pirates, Fin Design, Mavericks VFX, and Zero VFX.
MONDAY, FEBRUARY 24, 2:30PM PT: Nick Holloway and David Pike from Interpath Advisory, the newly appointed administrators of the U.K. branch of Technicolor (see earlier update below), said in a letter today that “the majority of the Company’s activities have ceased” in the U.K., and “with regret, the majority of the Company’s circa 440 employees in the UK have been made redundant.” (Being made redundant is the British equivalent of being laid off in the United States.) They added: “As a priority, the joint administrators will be providing support to those impacted, including supporting them with claims to the Redundancy Payments Service.”
Holloway further said:
As we seek to affect an orderly wind-down of the business, we will endeavour to support the Company’s workforce who have been impacted by redundancy, as well as exploring options to realise the Company’s assets. Any parties interested in acquiring assets of the UK business, and specifically ‘The Mill’ brand, should contact the joint administrators at Interpath.
MONDAY, FEBRUARY 24, 10:12AM: The investment funds and former lenders that own Technicolor Group (including Farallon Capital, Barings, and Pimco) had been trying to sell the company for months prior to the collapse. Last October, the Financial Times reported that Technicolor was in talks with potential buyers that included “groups of private equity companies and Middle Eastern sovereign wealth funds, as well as rival media groups.”
The company’s financial woes are nothing new. In 2020, Technicolor SA filed for Chapter 15 in a bankruptcy court in Texas, amid a restructuring effort. In 2022, Technicolor Group was spun out from the hardware division of Technicolor SA, which was focused on connected home devices and self-storage facilities. The hardware side rebranded as a new company, Vantiva, and is not affected by the current Technicolor Group situation.
MONDAY, FEBRUARY 24, 9:30AM PT: It’s been challenging to come up with a tally of Technicolor’s current workforce, since the numbers fluctuate constantly and have also been shrinking dramatically in recent years. The best estimates seem to be in the range of 4,500 to 6,000 people. A Financial Times article from four months ago declared the workforce at “about 6,000 people.” An independent estimate by Joseph Bell, who formerly worked in management at The Mill, identifies the headcount at around 4,500 people. Bell posted a detailed explanation of he came up with his numbers in this Linkedin post, which is also embedded below.
MONDAY, FEBRUARY 24, 12:46AM PT: In the United Kingdom, Technicolor Creative Studios UK Limited intends to file for administration today, February 24, the company said in a letter that has now been verified as authentic by users on Reddit. When a company goes into administration in the U.K., an external liquidator comes aboard to manage the company, repay creditors, and determine its future. The process has similarities to declaring bankruptcy in the United States. Administrators from Interpath Advisory have been appointed to handle Techniclor and they will be responsible for liaising with all UK employees.
Per Technicolor’s letter sent on Sunday:
Once the Administrators are appointed, they will send an email with dial in details for a call tomorrow afternoon where they will explain the impact of the Administration on employees. Whilst you are awaiting this call tomorrow and the details for the next steps, we would ask that you please refrain from coming to the office which will be close[d] for the day.
SUNDAY, FEBRUARY 23, 10:43PM PT: Technicolor operates a network of studios that include MPC, Mikros Animation, The Mill, and Technicolor Games. Its various studios provide vfx and animation services for most of the Hollywood majors. Mikros Animation’s upcoming projects include Paramount’s Teenage Mutant Ninja Turtles: Mutant Mayhem 2 and Netflix’s Plankton: The Movie, while MPC has been working on Disney’s hybrid adaptations of Lilo & Stitch and Snow White, as well as Paramount’s Mission Impossible – The Final Reckoning. A reel of its various studios’ output is below:
Solid details of what is happening are scarce at the moment, but someone identified as an “insider” told Variety that, “People are rushing to see if they can do a deal.”
The company already sent out a WARN Act notice to U.S. workers last Friday informing them that it will shut down U.S. operations this coming week due to “severe financial challenges.”
In that letter, which has been widely shared online and corroborated by many different people on Reddit, the company said: “Despite exhaustive efforts — including restructuring initiatives, discussions with potential investors, and exploring acquisition opportunities — we have been unable to secure a viable path forward. Unfortunately, this leaves us with no alternative but to acknowledge that the Company may be forced to foreclose.”
Another letter from Technicolor CEO Caroline Parot was sent out this weekend to staff globally at Technicolor’s studios and offices in the U.S., Canada, U.K., and India. The letter, which has also been shared by users on Reddit, makes clear that the entire company is in deep trouble. The text of the letter is below 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