The news of hundreds of impending layoffs at the VFX firm DNEG has sent shockwaves through the industry. The outfit has begun a consultation process in both the UK and Canada, signaling a potential exodus of around 5% of its global workforce. The layoffs are expected to hit the Research and Development teams particularly hard, reflecting the ongoing challenges in the market despite efforts to stabilize the situation.
In the UK, where an estimated 100 job cuts are projected, the union Bectu has expressed deep concern for the affected workers. Philippa Childs, the Bectu boss, emphasized the organization’s commitment to supporting its members during this difficult period. She acknowledged the turmoil that the layoffs will bring to the already struggling UK film and TV sector, underscoring the broader challenges faced by businesses in the current economic climate.
DNEG’s recent unionization in Canada through an IATSE branch has opened up avenues for assistance to affected employees. Both Bectu and IATSE Canada are actively engaged in coordinating efforts with DNEG management to navigate the layoffs and provide necessary support to the workforce. This collaborative approach reflects a commitment to ensuring a fair and transparent process for all involved parties.
This wave of layoffs is not an isolated incident for DNEG, as the company grappled with similar challenges in the previous year amidst the global recession. To mitigate further job losses, DNEG introduced a controversial pay offer that required employees to consider significant pay cuts or participate in a loan scheme. Despite initial hopes for improvement, the economic conditions have not significantly shifted, leaving many employees uncertain about their future at the company.
DNEG, a major player in the VFX industry, boasts an impressive portfolio that includes blockbuster films like “Dune: Part Two,” “Oppenheimer,” and “The Last of Us.” The company’s track record of award-winning projects, such as “Inception” and “Tenet,” has solidified its reputation as a leading provider of visual effects services. Led by Namit Malhotra, DNEG operates globally with offices in key locations like London, LA, Vancouver, Mumbai, and Toronto.
Despite reporting significant revenue growth in its latest full-year results, DNEG’s financial stability is now under scrutiny as the economic landscape continues to evolve rapidly. The company’s failed attempt to go public through a SPAC deal in early 2022 underscores the challenges it faces in navigating the shifting market dynamics. With uncertainties looming over the industry’s future, DNEG’s ability to weather the storm and emerge stronger remains a point of concern for stakeholders and employees alike.