Beyond Technicolor’s specific challenges, the broader VFX industry continues to grapple with systemic issues, including cost-cutting pressures, exploitative working conditions, and an unsustainable business model. VFX houses often operate on razor-thin margins, competing in a race to the bottom due to studios’ demand for cheaper and faster work. This results in a cycle of overwork, burnout, and, in many cases, eventual bankruptcy, as seen with Rhythm & Hues in 2013 and now at Technicolor. The reliance on tax incentives and outsourcing further complicates matters, making VFX work highly unstable. With major vendors collapsing and industry workers facing continued uncertainty, many are calling for structural changes, including better contracts, collective bargaining, and a more sustainable production pipeline. Without meaningful reform, the industry risks seeing more historic names disappear and countless skilled artists move to other fields.
