Technicolor, a leading visual effects (VFX) and animation company, has begun closing its operations in the United States, raising concerns about its future. The company, known for its renowned brands—MPC, The Mill, Mikros Animation, and Technicolor Games—has contributed to blockbuster films such as Mufasa: The Lion King.
Its upcoming projects include Disney’s Lilo & Stitch live-action remake, Mission: Impossible – The Final Reckoning, and a sequel to Teenage Mutant Ninja Turtles.
Financial Crisis Halts Operations
In a recent town hall, Technicolor India head Biren Ghosh acknowledged the company’s dire financial situation, stating that it is no longer sustainable.
“Technicolor is clearly financially and operationally not moving forward, and we’ve reached a stage where we are unable to function as an organization,” he said.
The Managing Director for Asia Pacific confirmed that the company lacks the funds to support Technicolor India, meaning salaries and other dues cannot be released.
Impact on Employees in India
As of February 2024, Technicolor employed approximately 3,370 people in India, according to market research firm Tracxn. With the parent company struggling, employees now face delayed salaries and uncertainty regarding their provident fund contributions and statutory benefits.
During the town hall, Ghosh explained the company’s operating model:
- India functions purely as a production hub for Technicolor’s global sites, while corporate control—including finance, accounting, technology, and HR—remains centralized in Paris.
- Indian operations deliver work to international Technicolor sites, which in turn invoice clients and collect payments.
- Without fund disbursement from headquarters, employee salaries and other financial obligations cannot be met.
Employees Left in Limbo
With salaries for February unpaid, employees are grappling with financial uncertainty. CEO Caroline Parot has assured staff that Technicolor is exploring ways to sustain operations across different countries, but a full shutdown in India could leave thousands without jobs.
As the situation unfolds, employees are left awaiting clarity on their financial security and the future of Technicolor’s Indian operations.
