In a stunning blow to the visual effects industry, Technicolor Creative Studios will reportedly shutter all U.S. operations of The Mill, MPC Advertising, and Mikros Animation. This abrupt closure, following months of financial turmoil, impacts hundreds of employees across New York, Los Angeles, and Chicago.
Reel 360 News has obtained the letter sent to The Mill’s U.S. employees, which was issued on Friday, February 21, 2025, as part of a WARN (Worker Adjustment and Retraining Notification) Act notice. The letter, included in full below, warned employees that operations would cease as early as Monday, February 24, 2025:
Dear Employees,
As we have communicated over the past months, Technicolor has been facing severe financial challenges. Despite exhaustive efforts—including restructuring initiatives, discussions with potential investors, and exploring acquisition opportunities—we have been unable to secure a viable path forward. Unfortunately, this leaves us with no alternative but acknowledging that the Company may be forced to foreclose.
In line with applicable state and federal legislation, please find attached a WARN Notice. If no viable solution is identified by the end of today, Friday, February 21, 2025, we will be required to cease our U.S. operations as early as Monday, February 24, 2025.
If you reside in one of the following states: CA, CO, MA, UT, CT, OR, NV, please review and complete the attached direct deposit authorization form and return it to hrops.us@technicolor.com ASAP if you agree to receive your final paycheck through direct deposit.
We understand that this news is difficult, and we will provide further updates as soon as we have more information.
Thank you for your patience and support during this challenging time.
Financial Turmoil and Industry Impact
Technicolor has received industry acclaim for its visual effects work, with recent Oscar nominations for Top Gun: Maverick and multiple BAFTA and Emmy nods.
According to an article published by the Financial Times on October 24, 2024, the creative studio has been in discussions with potential buyers, including private equity firms and media groups, to secure a sale. The company, which has roots dating back to 1916, has changed ownership multiple times and is currently controlled by investment funds including Farallon Capital, Barings, and Pimco.
While the company generates an estimated $523,225,000 annually, shifting industry trends and increased competition from streaming services have made sustaining profitability increasingly difficult.
Efforts to restructure the company, including leadership changes such as the appointment of CEO Caroline Parot in 2023 and media executive Marc-Antoine d’Halluin as chairman, have yet to yield a clear path forward. Despite receiving critical acclaim for its work, including recent Oscar and Emmy nominations, the company has been unable to regain stability. The Mill’s abrupt closure underscores the severity of the situation.
These discussions were part of Technicolor’s efforts to address ongoing financial challenges that were exacerbated by the COVID-19 pandemic and the impact of Hollywood strikes, which had significantly disrupted production schedules and revenue streams. Despite these efforts, the company ultimately faced insurmountable financial difficulties, leading to the shutdown.
Industry experts note that Technicolor’s financial struggles reflect broader challenges in the visual effects sector, where high production costs, increasing competition, and delayed payments from clients have created economic strain. Despite efforts to diversify services and expand into emerging markets, The Mill could not withstand the financial pressures exacerbated by Technicolor’s ongoing financial instability.
Sources say that Technicolor will officially stop trading on Wall Street this Monday.
A History of The Mill
Founded in 1990 by Robin Shenfield and Pat Joseph in London, The Mill quickly established itself as a pioneering visual effects (VFX) studio. It became the first European company to adopt an entirely digital workflow, which allowed it to lead the charge in high-end visual effects for commercials, music videos, and feature films. Over the years, The Mill has been responsible for award-winning projects, collaborating with top brands such as Nike, Coca-Cola, and Audi.
In 2002, The Mill expanded its operations to the United States, opening its first U.S. office in New York, followed by studios in Los Angeles (2007) and Chicago (2013). The company continued to grow internationally and was later acquired by Technicolor in 2015. Under Technicolor’s ownership, The Mill merged with MPC Advertising in 2022, forming a unified global VFX studio.
The Mill has received significant industry recognition, including an Academy Award for Best Visual Effects for its work on Gladiator (2001) and multiple Emmy nominations for outstanding visual effects in television productions. The company’s high-profile projects span advertising, television, and feature films, making it one of the most respected VFX houses in the industry.
Most recently, The Mill teamed with Wieden+Kennedy to create a Nike celebration for The Philadelphia Eagles Super Bowl win:
Despite its success, The Mill reportedly faced increasing competition and cost pressures in the VFX industry. Rising labor costs and declining client budgets placed additional strain on the company, making it difficult to sustain profitability.
Employee Reactions and Industry Response
The Mill, which had approximately 1,655 employees worldwide before the shutdown, had a significant portion of its workforce based in the United States. The sudden closure will leave hundreds of employees without jobs, impacting industry professionals across its three major locations.
The closure has left many of them scrambling to find new roles, and several have taken to LinkedIn to seek support and job opportunities. A former employee posted:
“Hi everyone! I’m seeking a new role and would appreciate your support. I’m looking for Senior 3D Animator roles. If you hear of any opportunities or just want to catch up, please send me a message.”
Another former staff member expressed their heartbreak over the situation:
“Got swept up in The Mill’s closure yesterday. I’ll be ok, but I’m heartbroken for the immensely talented artists, production, and support staff that just had their lives turned upside down. Mill folks, ping me if we worked together and you need a reference. You all KNOW I owe each and every one of you a favor. It’s truly the least I can do.”
Others remain optimistic about future opportunities:
“As many of you have heard, The Mill seems to be very suddenly closing down and while there is a great deal of uncertainty about what’s next, the one thing I am certain about is that I’m not ready to stop doing killer work. So if you or anyone you know is down to clown, let’s chat!”
As of now, there has been no official statement from Technicolor regarding severance packages, continued benefits, or potential future restructuring plans. According to a source, that will come on Monday.
The Mill still has offices in London, Paris, Seoul, Shanghai, and Bangalore. Their status is unclear.
Reel 360 News has reached out to The Mill leadership for comment but has not yet received a response. This is a developing story. Stay tuned for further updates.
Colin Costello is the West Coast Editor of Reel 360. Contact him at colin@reel360.com or follow him on Twitter at @colinthewriter1
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