Singapore-based visual effects and animation studio Lucasfilm will close in the approaching months after nearly twenty years for economic reasons, parent company Disney said on Tuesday.
The Singapore studio was founded in 2000 by Industrial Light & Magic (ILM), whose founder was, amongst others, star Wars creator George Lucas and is a division of Lucasfilm.
For years, his home in Singapore was the impressive Sandcrawler constructing, named in his honor star Wars transport that inspired its design. Lucasfilm sold the constructing in 2021.
“Over the next several months, ILM will be consolidating its global footprint and discontinuing its studio in Singapore due to economic factors impacting the industry,” Disney said in a press release.
There was no word on what number of staff can be affected in Singapore.
ILM employs 340 staff in Singapore, Channel News Asia reported, quoting an worker who told the station that the employees would proceed working on the studio until the tip of the 12 months.
In February, Disney announced it was cutting 7,000 jobs worldwide as a part of a cost-cutting reorganization amid erosion of its traditional TV business and amid fierce competition and declining subscriber numbers for its Disney+ streaming service.
“Lucasfilm’s decision to shut its operations in Singapore is in response to changes within the industry and business conditions,” Singapore’s Infocomm Media Development Authority (IMDA) and the Economic Development Board (EDB) said in a joint statement.
“The global media industry faces disruption from rapid technological advances, while studios grapple with talent and profitability challenges.”
Both government agencies said Lucasfilm and relevant government agencies are helping affected staff find jobs at other corporations.
The Singapore studio has produced high-profile Hollywood productions, including: Man of iron, Avengers AND star Wars – in accordance with the EDB website.
Lucasfilm Singapore began in 2004 as an animation studio.
“By having a base in Singapore, we can create something new in animation, a style that will blend East and West and offer something that has not been seen before,” Lucas said in 2004, in accordance with the LA Times.
Lucasfilm and Disney didn’t immediately reply to requests for comment.
Additional reporting by Business Insider
