Bristol-based Aardman Animations is reportedly trimming its workforce in the face of challenging market conditions that continue to impact the industry at large.
The studio is in the process of eliminating approximately 20 roles that represent less than 5% of its 400-plus employees, according to Deadline. Roughly six of these layoffs are voluntary redundancies.
To boost its bottom line, Aardman is also planning to fill a number of new positions—including a senior licensing manager and sales executive—that will primarily focus on mining more value from lucrative entertainment brands like Wallace & Gromit (pictured), Chicken Run and Shaun the Sheep. The company also plans to mitigate risks by exploring partnerships with other companies as it develops new IPs.
Aardman posted its full-year earnings for 2023 on October 10, reporting a loss of US$720,000—compared to a profit of US$2 million the previous year. One contributing factor was an impairment charge of US$2.2 million on CG-animated comedy Lloyd of the Flies.
“The [series], which delivered in 2022, was showing a significant value of unrecouped costs at the end of the year,” Aardman stated in its earnings report. “Although well-received on release, performance of the brand has been adversely affected by very challenging current market conditions.”
Last year, the studio grappled with significant increases in overhead costs, energy costs, rent and general repairs, among other expenses. “Like every other organization, we [are also facing] the uncertainty of future energy costs, high inflation, the cost-of-living crisis and attempting to keep up with paying market rates to attract and retain talent,” according to the same report.