Nov 10, 2023

Netflix Cuts One-Third of Animated Feature Animation Division as Part of Strategic Overhaul (Exclusive)

Netflix has drastically reduced the number of employees in its animated feature film division as part of a restructuring of the division.

The layoffs, which took place on Wednesday, November 1, were not previously reported.

Cartoon Brew understands that at least one-third of the feature-length division was laid off, totaling more than 50 employees. The layoffs involved "indirect" staff, such as executives, operations, and production management. Artists were not included in these layoffs. On the day of the layoffs, an internal message was sent to staff; Cartoon Brew obtained a copy of the memo, which began, "Today will be a difficult day for all of us."

The memo attributed the layoffs to a strategic shift in the feature animation department that was first reported last month." As we shared in our last town hall," the memo states, "we have reduced our future film slots to focus on offering two Netflix-owned tentpole films per year." That unfortunately means that today we are saying goodbye to some of our overhead colleagues." The memo goes on to say. (The company had released 4-5 original feature films in 2022-'23.)

While Netflix is reducing its own productions, the company expects a steady stream of feature releases from its new partner, Skydance Animation It should be noted that while Netflix is cutting back on its own productions, the company expects a steady stream of feature films from new partner Skydance Animation. The new deal with Skydance, which opens with Vicki Jenson's "Spellbound," includes recent films by Brad Bird ("The Iron Giant," "The Incredibles"), Rich Moore ("Zootopia," "Wreck-It Ralph"), Nathan Greno (" Tangled), as well as recent films by Nathan Greno ("Tangled").

One Netflix insider was cool with the news of the layoffs and remained upbeat about the division's future. "Despite the layoffs, this is still a studio that endorses two original films a year," the person told Cartoon Brew. Indeed, there are plenty of reasons to be optimistic about Netflix's animation ambitions." This year, Netflix won the Academy Award for Best Animated Feature for Guillermo del Toro's "Pinocchio," only the second time in the past 11 years that a studio other than The Walt Disney Company has won the award. The streaming service also has several strong contenders for Best Picture this season, including "Nimona" and "Chicken Run: Dawn of the Nugget."

In 2024, Netflix currently plans to deliver at least seven animated feature films, including highly anticipated titles such as Orion and the Battle of Darkness and Ultraman: Rising.

Cartoon Brew reached out to Netflix for comment, but had not received a response by the time of publication.