Technicolor India, a leading visual effects (VFX) and animation studio, has shut down its operations in Bengaluru and Mumbai, impacting nearly 3,000 employees. The decision follows financial troubles faced by its parent company, Technicolor Group, which filed for a court recovery process in France due to its inability to secure investors.
Employees Left in Shock
The shutdown was sudden, with India’s management learning about it only through an email from Technicolor Group CEO Caroline Parot. Employees, many of whom worked on major Hollywood productions, were caught off guard. Some were not even allowed into office premises to collect their belongings.
Impact on the AVGC-XR Industry
Technicolor’s exit is a major setback for India’s Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector. Industry leaders believe that while global production houses will look for new service providers in India, the sector may see a shakeout and consolidation.
Possible Reasons for the Shutdown
Experts point to multiple factors behind the closure, including:
- A slowdown in the global VFX industry.
- The impact of the Hollywood writers’ strike, which halted productions.
- Financial difficulties post-COVID, affecting several global studios.
Despite the setback, industry professionals remain optimistic that India will continue to be a key destination for VFX and animation services.
