Netflix’s animation unit will lay off an unknown number of people in the coming weeks, the streaming company confirms.
The layoffs, first reported by the Penske Media Group entertainment trades, are part of a restructuring process that will result in the shutdown of two films currently in pre-production. Netflix is also looking to prioritize the acquisition of third-party projects as a cost-effective alternative to producing its own content.
Previously unannounced film Escape From Beverly Hills and animated musical Tunga are two of the films that will be impacted by the change. Escape From Beverly Hills will return for bidding on the open market and Tunga will be sent back to Netflix’s development team.
Rival animation studio Dreamworks Animation is also undergoing layoffs. Dreamworks is also making a shift towards cutting costs and outsourcing production.
But the change also comes following a notable year for Netflix Animation, with Guillermo del Toro’s Pinocchio winning the Academy Award for Best Animated Feature.
Netflix has previously signed output deals with Sony Pictures Animation, Nickelodeon, Illumination and Dreamworks Animation, and in the future will likely rely more heavily on these content acquisition deals as it cuts down its own animation division.
Upcoming releases from Netflix Animations include Leo, voice-starring Adam Sandler as a lizard with a decades-long life as a class pet, the Charlie Kaufman-penned Orion and the Dark and franchise sequel Chicken Run: Dawn of the Nugget.
