Employees were gathered this morning and told the news, then sent home for the day. However a company spokesman said many will be back at work as soon as tomorrow.
Technicolor will continue to provide all front-end, pre-release services, including dailies, in Los Angeles, but numerous layoffs are likely to result from the closure of the printing plant.
A Technicolor spokesman told Variety “The accelerating growth of digital technology plus the 2011 expiration of our lease at the North Hollywood location has caused us to reassess its cost structure in light of an anticipated decline in feature film volume requirements. With North American digital penetration now exceeding 30%, film print volume requirements do not require the operational capacity afforded by our two facilities, North Hollywood and Mirabel, for release printing.”
With the shift of printing to Mirabel, Technicolor will no longer strike release prints in the United States.
Company has begun talks with its North Hollywood union reps “to review options, to establish a cost-effective operation, given the state and trajectory of the film business.
“Any future action on our part will be contingent upon the outcome of those discussions.”