UK-based animation powerhouse, Aardman, has is put in a situation of dealing with layoffs following a massive financial loss. The studio is reeling from a spike in production costs, closing 20 jobs.
The Wallace and Gromit studio slashed “less than 5%” of its 425 employees, as Deadline reports. The studio posted its 2023 financial report, pointing to a pre-taxed £550,135 (or $720K) loss. Its previous year, the studio made around £1.56M.
Its unfortunate loss has largely been pointed to the under-performance of 2022’s Lloyd of the Flies, which it’s still yet to recoup costs of. The worst part is it’s not gotten better, with the studio’s revenue falling to £26.7M last year.
We suspect Aardman hopes its next Wallace and Gromit flick, Wallace & Gromit: Vengeance Most Fowl, which is in the works for BBC and Netflix, will bump its revenue up and possibly recoup its costs and then some. It’s also working on Season 7 of Shaun the Sheep and the debut of Sugarloaf.
Managing director Sam Clarke touched on the layoffs, pointing out that it’s not just Aardman facing the changes and uncertainty of the entertainment industry.
“It is no secret that the entertainment industry is going through much change and uncertainty at the moment, and we have looked to take a proactive approach that focuses on our strengths and allows us to address these challenges whilst continuing to develop and produce award-winning work.
It is sad to say goodbye to any members of the team, but the changes that we have made will ensure Aardman is well-placed to navigate the current market and can look to the future with confidence – and several major new greenlit productions, which we will be announcing in the new year.”
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