Quebec’s Animation And VFX Industries Are Collapsing, Over 50% Of All Jobs Lost In 20 Months

Quebec’s animation industry is being decimated. Over half of all animation and vfx jobs in the Canadian province, including in the production hub of Montreal, have been lost since January 1, 2023, according to the Quebec Film and Television Council (QFTC).

The non-profit agency estimates that 4,167 workers have lost employment in the last 20 months, compared to over 8,000 people employed in late 2022.

The decline in the Canadian province’s animation and vfx employment began during the dual writers’ and actors’ strike in Hollywood last year, and took another blow after Quebec revised its tax credit system this past March, which made the province less attractive to Hollywood producers. (The government says it is redirecting its investment to live-action production, though it still believes its credits for vfx and animation production are competitive with other regions.)

While Quebec increased the rate of the basic tax credit from 20% to 25% of eligible production costs, it also introduced a 65% cap on the portion of contracts for animation/vfx productions.

The latest studio to be affected by mass layoffs is DNEG, which announced significant job cuts on August 28. While details on specifics have not been revealed, the staffing cuts have been confirmed by the International Alliance of Theatrical Stage Employees (IATSE) in Canada.

IATSE released a statement last week about the overall tax credit situation and said:

The film industry has been struggling since last year’s actors’ and writers’ strikes, so that situation coupled with Quebec’s tax credit reduction is the equivalent of kicking an industry when it’s down. As the union representing many of these workers, the IATSE is critical of the lack of consultation with industry stakeholders, as well as the speed with which the new regime was rolled out.

IATSE Director of Canadian Affairs John Lewis further added, “It is shocking to me that the Quebec Government, which has always been a huge supporter of the arts and arts workers, would not consult with the industry prior to making such a significant change. The consequences have already been devastating for the Province. We’re seeing a talent and economic bleed. Highly skilled workers are making plans to leave and studios are closing their doors and relocating.

IATSE is urging Quebec government officials to reverse the credit cap before “damage to the Province becomes permanent.” However, it may be too little, too late for many workers, because the industry in Quebec is contracting and unlikely to return anytime soon to its prior size. The CBC reported last month that at least four studios in the province are shutting down, while four other studios are looking to relocate outside of Quebec.