this post was submitted on 02 Sep 2025
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Animation

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The news of Nelvana's closure hit like a plot twist no one saw coming, but industry insiders point to a perfect storm of challenges. Reports from employees indicate the studio closed its doors on August 29, 2025, with no official statement from Corus yet. This follows a wave of layoffs and restructuring that began in 2024.

Parent company Corus Entertainment has been grappling with severe financial woes, including a steep advertising downturn fueled by economic uncertainty and the lingering effects of the 2023 U.S. writers' and actors' strikes. In July 2024, Nelvana paused all development and parted ways with VP Athena Georgaklis amid cost-cutting measures. Corus's broader issues include shutting down Disney Jr. and Disney XD channels in Canada by September 2025, signaling a retreat from kids' programming.

Experts cite industry-wide shifts: streaming wars have squeezed traditional animation budgets, while AI tools and offshore production reduce demand for in-house studios. Corruption allegations and executive pay hikes amid layoffs haven't helped public perception. For Nelvana, which integrated its operations into Corus in 2006, these pressures proved fatal.

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[–] SpikesOtherDog@ani.social 1 points 3 months ago

Ai tools, for tweening, what else?