Technicolor, a well-known visual effects (VFX) and animation company, has started closing its operations in the US. The company owns major VFX and animation brands like MPC, The Mill, Mikros Animation, and Technicolor Games. It has worked on big movies like Mufasa: The Lion King and has upcoming projects such as Disney’s Lilo & Stitch live-action remake, Mission: Impossible – The Final Reckoning, and a Teenage Mutant Ninja Turtles sequel.
Technicolor India head Biren Ghosh in a town hall recently said Technicolor “is clearly financially and operationally not moving forward and we’ve reached a stage where unfortunately we are unable to function as an organization”. He further stated that in the current circumstances, the company “do not have funds to send to Technicolor India” and “we will not be able to release salaries and other dues”.
As of February 2024, Technicolor employed approximately 3,370 people in India, according to market research firm Tracxn. While a complete shutdown could affect thousands of workers, CEO Caroline Parot has assured employees that the company is exploring ways to sustain operations in each country.
During the meeting, Ghosh said “We operate solely as a production hub for Technicolor’s international sites while Paris headquarters maintains absolute control over all corporate functions—finance, accounting, payables, technology, HR and all the backbone functions of the organization,” he stated. This arrangement, he clarified, meant that “India works and delivers for our various global sites. They are our customers; they deal with our clients world over, we deliver to them, we invoice them, and they pay us”.
“Unless headquarters releases these funds, we will not be able to pay salaries or other dues which are quite significant across the company in India,” he said. “We have all been impacted by this like everyone else on this call,” he added.
The sudden shutdown has left employees without their February salaries and uncertain about their provident fund contributions and other statutory benefits.
