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Economic Troubles Hit Disney Hard, Forced to Shut Down Animation Studio

lucasfilm singapore shut down
Credit: Lucasfilm; ABC

After a rough year for the Walt Disney Company, it will suffer another setback with the closure of Lucasfilm’s Singapore animation studio.

Disney has not had an easy year. From the massive layoffs the company conducted in order to cut costs to the tune of $5.5 billion, to the recent remarks Disney CEO Bob Iger has made about how some of Disney’s television and cable properties are not core to the company, it’s clear that all is not well at the Mouse House.

Star Wars A New Hope

Luke Skywalker (Mark Hamill), Princess Leia Organa (Carrie Fisher), Han Solo (Harrison Ford) / Credit: Lucasfilm

Related: Is Disney Going to Sell Lucasfilm? Here’s the Truth

Now, Disney’s Singapore branch of Lucasfilm Animation is the next in line to close “due to economic factors affecting the industry.” The studio has been open for 20 years.

A Disney spokesperson explained that “over the next several months, ILM (Lucasfilm’s Industrial Light & Magic) will be consolidating its global footprint and winding down its Singapore studio due to economic factors affecting the industry.”

Singapore’s government was disappointed in the move on the part of the Walt Disney Company.

george lucas jj abrams

George Lucas and JJ Abrams / Credit: Joi Ito, Flickr

Related: Lucasfilm Reportedly Fires Controversial Executive After Latest Film Flops

As reported by Bounding Into Comics, “In a joint statement, the government’s Economic Development Board and Infocomm Media Development Authority lamented how “Lucasfilm’s decision to wind down its Singapore operations is in response to changes in the industry and business conditions.”

“The global media industry is facing disruption from rapid technological advancements, while studios are coping with challenges relating to talent and profitability,” the agencies added.

The statement concluded by praising Lucasfilm’s studio’s impact on Singapore’s economy, also going further to share that “the company has developed world-class digital animation talent for the industry through knowledge and skills transfer.”

star-wars-galaxys-edge

Star Wars: Galaxy’s Edge, Disney’s Hollywood Studios Theme Park / Credit: Disney

Disney winding down the Singapore branch of Lucasfilm’s Animation Studios is indicative of both a larger issue with the global economy as well as the House of Mouse’s economic issues. Disney’s recent business troubles have had many questioning what the future of the Walt Disney Company holds and what its legacy will be.

Some have speculated that Disney CEO Bob Iger is even looking to sell the company to one of the massive tech giants in the industry. While Bob Iger has refused to comment on these speculations, save for reminding people of the “global regulatory environment,” it is worth noting that selling to a bigger tech giant (like Apple) might just be Disney’s best move.

About Priyanka Kumar

Priyanka is a writer, artist, avid reader, and travel enthusiast based in Chicago. In her free time, she is probably walking by the lake, catching up on the latest releases on TV, or spending inordinate amounts of time rewatching Moana, Encanto, and her Disney Channel life-long favorites Zack and Cody wreak havoc on the Tipton.

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