Streaming giant Netflix has confirmed their in house animation division will be facing layoffs due to “restructuring.” An unknown number of people will be laid off in the coming weeks.
The restructuring process will also result in less in-house produced animation content. Netflix intends to receive more projects from third-party through output deals. This is considered a more cost-effective alternative to the company producing their own content. Netflix previously signed output deals with Sony Pictures Animation, Nickelodeon, Illumination, and DreamWorks Animation. With the choice to restructure their Animation division, they will rely more heavily on those output deals.
Netflix Animation has already put two of their original projects into turnaround. The two projects are “Escape from Beverly Hills,” which was not previously announced, and “Tunga.” “Tunga” is based on an African mythology tale about the Bantu-speaking Shona people of Zimbabwe. “Tunga” will remain at Netflix, where it is being sent back to development.
This is not the first time Netflix Animation has faced layoffs. After the division had launched, it delivered several projects that did not meet Netflix’s expectations. This led to multiple layoffs in 2022, with 70 people being laid off in May 2022 and 30 more laid off the following September.
It is ironic and more than a little sad that the division is resulting to layoffs just as they started finding their footing. Netflix recently won their first Academy Award for feature animation with “Guillermo del Toro’s Pinocchio.” The division has also earned strong viewership numbers from recent animated projects “Nimona” and “The Monkey King.”
Currently there are two more family-friendly features set to release by the end of the year. There is the Adam Sandler-headlined “Leo” and Aardman’s “Chicken Run: Dawn of the Nugget.” Check out the two trailers down below.
