Adapting to Change: The Key to Thriving in a Shifting Industry

Dear Toonzians,

The past few weeks have been a wake-up call for the animation and VFX industry. The unexpected closure of major studios like Technicolor, On Animation, and Jellyfish has shaken the industry, leaving thousands of artists and professionals uncertain about their future. When we first heard about Technicolor’s shutdown—affecting 3,200 employees across Bangalore and Mumbai—our immediate concern was for the talented individuals whose careers were abruptly disrupted. In an already challenging post-pandemic market, this news hit hard.

Technicolor has been an industry stalwart for decades. From contributing to Disney’s Pinocchio in 1940 to working on contemporary blockbusters like Mufasa: The Lion King, its legacy is undeniable. Its fall, followed by the closures of other notable studios, has understandably raised concerns about the stability of our industry. But to fully grasp this situation, we must look beyond these isolated events.

The decline of these studios is not merely a regional issue—it’s a global one. Several factors have contributed to these closures: shifts in European tax regulations, the lingering effects of the Hollywood writers' strike, sluggish post-pandemic recovery, and the increasing role of AI-driven automation in content creation. These changes did not happen overnight, nor can they be attributed to a single cause. Instead, they highlight a broader industry transformation that demands our attention.

However, let me be clear—this is not the end of animation and VFX. The industry is not dying; it is evolving. As we have seen throughout history, adaptation is key to survival. Animation has transformed time and again—from 2D to 3D, from traditional techniques to CGI, from physical media to digital streaming. Each of these shifts brought uncertainty, but also opportunities for those who embraced change. The present moment is no different.

Yes, AI and automation are altering workflows. Yes, economic challenges are testing resilience. But these disruptions also open doors for innovation, reinvention, and fresh storytelling approaches. Those who continuously upskill, adapt to new technologies, and push creative boundaries will thrive.

At Toonz, we have always prioritized staying ahead of industry trends. Our commitment remains firm—leveraging emerging technologies, nurturing creative talent, and ensuring that our storytelling continues to resonate globally. The recent closures serve as a stark reminder that complacency is not an option. Instead, we must view this moment as a call to action.

The road ahead may not be easy, but together, we will navigate it. With agility, creativity, and a forward-thinking mindset, the future of animation remains bright. Let’s continue to innovate, embrace change, and create the magic that defines our industry. Because no matter how technology evolves, storytelling will always have a place in the world.

Let’s move forward, together.