As I scroll through X, I’m saddened, but not shocked, to see Maxwell Atoms, creator of the hit cartoon “The Grim Adventures of Billy and Mandy,” auctioning off beloved production keepsakes to pay his mortgage. The concept doesn’t sound right; “Billy and Mandy” is a show that raised millions of kids, and Parrot Analytics reports that it’s currently five times more in demand than the average TV series in the United States. One would think whoever came up with the idea would be swimming in money like Scrooge McDuck. But this isn’t the case — and Atoms isn’t the only one.
It’s not an understatement to say that the American animation industry is imploding. Pixar recently laid off 14% of its workforce; Cartoon Network closed its historic Burbank studio; DreamWorks plans to outsource its production by 2025 fully; Max silently removed 25 animated shows from its platform; Netflix downsized its animation department; Warner Bros. “Coyote vs. Acme” was shelved for a tax write-off; and artificial intelligence is actively swallowing up animation jobs. That’s just naming what’s recent. A silent build-up has been stewing for decades, dating back to 2001 when the Academy Awards introduced the “Best Animated Feature” category to shut animation out of the big wins. While DreamWorks’ “The Wild Robot” grossed $150 million worldwide, the studio gave its animators’ jobs to underpaid overseas workers. C-Suite executives make millions of dollars off animated shows while their artists hold protest rallies. The creator of “Billy and Mandy” struggles to pay his mortgage. Where did it all go wrong?
The Animation Guild, which has been bargaining with the Alliance of Motion Picture and Television Producers for over a hundred days, offers several reasons, the top three being AI, layoffs and outsourcing.
Through internal surveys and anecdotal research, the Guild reports that one-third of its members — around 1,600 people — were laid off in the past year. “I’m concerned about the way that animation crews are getting smaller and smaller,” said member Alex A.K., a 2D and 3D animator. “Fewer people are taking on the same amount of work, [so many employees] are expected to hold more job responsibilities within their role with no additional compensation.”
Artists are similarly worried about the growing prevalence of transferring jobs overseas — a cost-cutting tactic that enables exploitative short-changing for work. “It seems like every day the studios are outsourcing our jobs overseas, and it’s a never-ending creep of consolidation,” prop designer Brett Noll commented. “Artists are already in L.A., and we’re ready to work.”
The prevalence of generative AI proves to be the ultimate villain. In collaboration with CAA and CVL Economics, the Guild discovered that 29% of animation jobs could be disrupted in the next three years; indeed, in its newest report, three-fourths of survey respondents composed of 300 entertainment executives “indicated GenAI tools, software, and/or models had supported the elimination, reduction, or consolidation of jobs.” Entry-level positions are expected to be the most under attack, and without entry-level experience, how are artists supposed to assimilate into the industry?
That’s the catch — they’re not. Roughly 33% of American animators are out of a job, and if the Guild doesn’t strike a deal, that number is set to increase. The only thing keeping C-Suite executives from going all-in with AI is widespread consumer resistance, which the Guild hopes to utilize. “Ensuring the endurance of human-made art and labor in animation will require a multi-faceted approach that includes … public pressure and awareness campaigns,” TAG’s AI task force reports. For instance, a social media toolkit that enables Guild supporters to show their solidarity with animators is available on their website.
Despite the roadblocks, the Guild is optimistic about their bargaining. “My hope is that [our research] gives animation workers everywhere confidence in TAG’s multi-pronged approach to meeting the challenge we face,” AI Task force member Brandon Jarratt said. While the American animation industry seems to be collapsing, those fighting for its right to exist are determined to pick up the pieces. Rallies, negotiations and weekly events are full-steam ahead, and, like the industry for over a century, they show no signs of slowing down.
The full details of TAG’s proposed contract can be accessed at tagnegotiations2024.com.
