BENGALURU: Many employees of Technicolor India, Paris-based visual effects (VFX) group's India unit, received their layoff letters on Friday, as the company closed its operations in the country. The lay off will impact over 2,500 employees from both Bengaluru and Mumbai offices. There was uncertainty among Indian employees as four days ago it was reported that the company, which worked on films such as Mufasa: The Lion King, collapsed in the UK and the US.
Employees were shocked when Technicolor India head Biren Ghosh in a town hall meeting told them that the company has reached a stage where they could not function as an organisation and that they do not have funds to send to Technicolor India.
Many employees told this newspaper that they are worried now about their future and it is difficult to get a job currently considering the present market conditions. Those who were laid off also include employees who joined the workforce only a few months ago.
Another former employee said these layoffs started six months ago and nobody bothered until they announced the closure. It is said that the company is not in a position to give salaries for February.
"We received an email from the CEO on Monday highlighting that they have applied to the Paris Commercial Court due to lack of finance. According to them, seniors are not taking any actions to help them and save their jobs," said another employee in the Bangaluru office.
When asked about the future of the animation industry, Munira Loliwala, VP, Strategy and Growth, Teamlease Digital, pointed out that India's animation industry offers high-quality services at 40%-60% lower costs than Western countries, making it an attractive outsourcing destination. This has contributed to a significant increase in exports and a 20% growth in the sector.
"However, despite this growth, the industry faces challenges such as inadequate incentives, insufficient infrastructure for esports, and high talent attrition rates. Expansion into sectors like education and entertainment, along with investments in technology, could help build scale. The industry also faces a talent gap, with a preference for freelancers over full-time roles, but perceptions are changing, encouraging more youth, including women, to pursue careers in this field," Loliwala added.
"Due to the lack of effective incentives, hardware gaming support equipment, exports infrastructure, and tax benefits in this industry, it remains vulnerable to fluctuations in hiring and attrition, as it struggles to achieve long-term sustained growth," she added.