Netflix Is Reportedly Restructuring Its Animation Unit With Layoffs Likely

Scott Pilgrim anime teaser fight

Netflix will reportedly be restructuring its internal animation unit and shifting to external production companies for its animated projects, with layoffs apparently expected in the coming weeks. Two films have also reportedly been shut down, and more may be on the chopping block.

A new report from Variety has suggested that the animation unit at Netflix will undergo a significant reorganization, and while details have yet to be finalized, multiple workers are expected to be laid off as part of the move. Netflix reportedly confirmed the plans to Variety via a spokesperson.

Two films – the unannounced Escape From Beverly Hills and Godwin Jabanwe’s Tunga – have been halted as part of the process, with the former being put back on the market and the latter going back into development at Netflix.

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Netflix has been making a big push into animation in recent years, developing and exclusively licensing a whole range of productions. It’s had a great deal of success with it too, with series like Castlevania and its spinoff Castlevania: Nocturne, becoming massive hits with fans, so much so that Nocturne got renewed for a second season just days after its release.

It’s also got a massive range of shows currently in the works or about to air, including gritty Astro Boy adaptation Pluto, the upcoming Scott Pilgrim anime, a new Devil May Cry anime series, and so much more. It’s also licensed the upcoming Chicken Run 2, and Adam Sandler animated film Leo, both of which are set to be released later this year.

Netflix even held its first ever Drop 01 animation presentation just two weeks ago, which showed off all of the above, along with a new Masters of the Universe trailer, a full trailer for Captain Laserhawk: A Blood Dragon Remix, a Tomb Raider animated series, and a teaser for an incredible new series called Blue Eye Samurai.

Netflix is expected to continue its push into animated content going forward, but will reportedly focus more on outside producers for future projects.