Update from Variety: CafeFX “Downsizing and retooling, not closing”

I worked on Pan's Labyrinth for Jeff Barnes (see above, generously pimping our book) at Cafe FX years ago and was worried to hear about yet another possible CA VFX studio closing in the past 2 weeks.  Various sources have confirmed that they have laid some people off, but the studio is not closing.  I cannot believe Twitter is now a news source, but this is the age we live in I suppose...

 via VFX Guide...
All week there have been rumors that CafeFX is closing. Today Jeff Barnes responded to this chatter by way of David S. Cohen at Variety who said via Twitter (@Variety_DSCohen):

Jeff Barnes of CafeFX texted me they are “downsizing and retooling, not closing.” and “Barnes of CafeFX also writes “We did NOT lay everyone off. we are still working on a project.” He says no more comments for now.” 

Cohen also mentions he may have more in Wednesday’s TechBytes column in Variety. You can follow the conversation on twitter by using a search for CafeFX via this link.

Update from Variety...

03/24/2010

"As we all know, the industry in California is experiencing a radical course correction as globalization, commoditization, foreign incentives and the economy continue to challenge our country and our state. Labor costs need to come down, overheads reduced, specializations realized, new partnerships solidified and smarter pipelines implemented." Barnes went on to say that CafeFX has "reluctantly reduced our headcount" to make those changes.

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