Technicolor India shuts down, over 3,000 employees affected

Technicolor India, a prominent studio specializing in visual effects (VFX) and animation, is shutting down its operations in Bengaluru and Mumbai, as part of a global closure initiated by its parent company, Technicolor Group, based in Paris.

The firm presently has 3,200 employees throughout India, with almost 3,000 based in Bengaluru alone. The abrupt decision has surprised many employees.

“Technicolour India is financially and operationally not moving forward. We reached a state where we are not able to function as an organisation anymore,” said Ghose, as quoted in The Hindu.

“It is unfortunate that this has happened to the best in class studio of Technicolor which employed best pool of talent, had best track record and acknowledged globally,” he added.

The management in India did not know about the closure until they got an unexpected email from Technicolor Group’s CEO, Caroline Parot. In her email, Ms. Parot stated that despite attempts, the company was unable to obtain funding, compelling them to initiate legal measures to either restructure or cease operations. This shutdown has resulted in numerous animators, graphic and lighting artists, special effects professionals, and image rendering specialists losing their jobs.

Numerous employees were prohibited from accessing their office to retrieve personal items, exacerbating their distress, according to media reports. The shutdown has significantly impacted India’s AVGC-XR (Animation, Visual Effects, Gaming, Comics, and Extended Reality) sector.

Industry professionals think that the worldwide economic slowdown and the writers’ strike in the US aimed at safeguarding their jobs from generative AI might have played a role in the organization’s financial difficulties. In the meantime, Ghose is negotiating with 15-20 additional studios to assist impacted employees in securing new positions.