Lately, it would seem that the future of the most well known animation studios is not looking bright. Animation giant Rhythm & Hues, the studio who produced Life of Pi, Scooby-Doo and The Golden Compass, is filing for chapter 11 bankruptcy and plans to let go over 200 of its animators. Digital Domain, the digital effects studio who wowed audiences with productions like Transformers, How the Grinch Stole Christmas and Titanic also filed for Chapter 11 bankruptcy in September of last year, unloading about 300 of its animators. Even Dreamworks hasn’t escaped the layoff woes: it projects that some 400 employees will loose their jobs in the upcoming year.
Why is this happening in the animation industry?