Sir Peter Jackson's Wētā FX has won many international accolades for the likes of the Lord of the Rings trilogy, King Kong and Avatar.
Sir Peter Jackson's Wētā FX has won many international accolades for the likes of the Lord of the Rings trilogy, King Kong and Avatar.
The news that Wellington-based visual effects and animation company Wētā FX is planning to cut around 100 jobs has been dubbed a “major blow” to the capital’s creative sector.
In a statement this morning, Wētā FX confirmed staff were informed yesterday of the proposed changes affecting roles in support departmentslargely based in Wellington.
The company, majority owned by Sir Peter Jackson, currently employs about 2200 people, predominantly in the capital.
“A number of macro factors have led to the proposed changes, including current challenges facing the global entertainment industry,” it said.
Economic Growth Minister Nicola Willis announced in May an additional $577 million for the international screen production rebate over the next four years.
Willis today said her sympathies are with “those potentially affected by Wētā FX’s proposed changes”.
“Change processes at any business are unsettling”, Willis said.
She said the rebate scheme funding was welcomed by those in the industry, but admitted the sector had faced recent global challenges with a decrease in production volume.
Finance Minister Nicola Willis met with WingNut films CEO Carlos Ramirez Laloli at Stone Street Studios in Wellington when she announced extra funding for film subsidies this year. Photo / Thomas Coughlan
“Nonetheless, we remain confident New Zealand is well-positioned to attract major productions, which look to us not only for our rebate scheme but also for our offering of exceptional talent, capability and locations” Willis said.
Wellington Mayor Tory Whanau said she was “saddened” to hear of the proposed layoffs.
“If proposed changes leading to job losses are confirmed, this will be a major blow to Wellington’s creative sector and the city’s economy, especially with the ongoing public service cuts,” Whanau said in a statement.
“We are ready to work with the Government and Wellington NZ to enhance the incentives programme, ensuring New Zealand can compete with other countries like Australia and attract a greater number of international productions.”
Wētā FX currently employs about 2200 people and has offices in Miramar, Wellington. Photo / Anthony Phelps
Paul Wolffram, an associate professor in the Victoria University of Wellington film programme, told Newstalk ZB the film production industry is “volatile”.
“It’s not unexpected in the context of the global situation at the moment”, Wolffram said.
He said, having just visited California, there is a shortage of work and major studios such as Universal are “sitting there idly”.
Wolffram blamed political uncertainty in the US for the weak market.
Wētā FX said there will now be a period of feedback and review before changes are confirmed and impacted staff informed.
If the proposed changes are confirmed, they will be phased in with specific dates or role transitions, dependent on individual agreements and circumstances.
The company is blaming “unexpected delays in projects being greenlit due to financial considerations”, as well as “the long-tail impact of the pandemic, industry strikes, and changes in audience content consumption habits”.
A current Wētā FX employee who contacted the Herald said they are directly impacted by the decision they describe as “final and imminent”.
“Many of us are anxious about the scale of this move and what it means for the future of our careers, our families, and the local creative industry.
“This would affect staff, both permanent and contracted, across various departments,” the employee said.
Wētā FX is 60% owned by Jackson and his partner Dame Fran Walsh. An entity associated with foreign shareholder Sean Parker owns 25%. Long-time Wētā effects supervisor Joe Letteri owns 8% and the remaining 6% is held by an entity connected to former Wētā chief executive Prem Akkaraju.
Wētā is headquartered in Miramar, where it is a major employer. Photo / Mark Mitchell.
Wētā FX is a separate company to Wētā Workshop, which focuses on the physical effects for films such as props, costumes, makeup and prosthetics.
The Herald reported last year that Wētā FX had experienced $190 million in losses over the past two years and only expects to return to profitability in the medium term.
For the year to March 31, 2024, Wētā reported an $83m loss. This followed a loss of $107m in the prior year.
Headquartered in Wellington, the business also has “creative hubs” in Vancouver and Melbourne.
Ethan Manera is a New Zealand Herald journalist based in Wellington. He joined NZME in 2023 as a broadcast journalist with Newstalk ZB and is interested in local issues, politics, and property in the capital. He can be emailed at ethan.manera@nzme.co.nz.
