“A consultation period has since started with the crew that are proposed to be impacted”, the statement reads.
Wētā FX said there will now be a period of feedback and review before changes are confirmed and impacted crew informed.
If the proposed changes are confirmed, they will be phased in with specific dates or role transitions dependent on individual agreements and circumstances.
“A number of macro factors have led to the proposed changes, including current challenges facing the global entertainment industry.
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“In addition to unexpected delays in projects being greenlit due to financial considerations, the industry continues to feel the long-tail impact of the pandemic, industry strikes, and changes in audience content consumption habits.
“As a leader in visual effects, which happens at the end of a film’s creation in the post-production process, Wētā FX is navigating the after-effects of these disruptions to ensure ongoing sustainability”, the statement ends.
The Herald has also seen an internal memo from CEO Daniel Seah sent to staff yesterday titled “update on organisational changes”, which further outlines plans for the restructure.
The company is 60% owned by Sir Peter Jackson and his partner, Dame Fran Walsh. Photo / Mark Mitchell
The memo says the restructure will impact staff working in department production, marketing, finance, facilities, T & C, T & R, IT, and central production.
“By the end of tomorrow, all crew in these departments will be informed of the proposed changes and how they can provide feedback”, it states.
Staff will gather for a “townhall” in mid-August where Seah said he will answer questions and speak to employees directly.
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 CEO Daniel Seah. Photo / Wētā FX
Formerly known as Weta Digital, the company was founded by Sir Peter Jackson, Richard Taylor, and Jamie Selkirk in 1993 to produce the visual effects for the film Heavenly Creatures.
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It has worked on the special effects for films like the Lord of the Rings trilogy, King Kong, James Cameron’s Avatar, Rise of the Planet of the Apes, and the Robbie Williams biopic Better Man.
Jackson sold the company’s tech division for a reported $2.3 billion to US based game tech company Unity in 2021.
In late 2023, Wētā FX said it and Unity “mutually agreed” to terminate Unity’s service agreement with Wētā FX causing 265 redundancies.
Following that, Jackson regained control of the company.
The company is now 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 FX is a separate company to Wētā Workshop, which focuses on the physical effects for films like props, costumes, makeup, and prosthetics.
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Wētā Workshop, also based in Wellington’s Miramar, is owned by Sir Richard Taylor and wife Tania Rodger.
Wētā FX crafted the ape characters in hit film Kingdom of the Planet of the Apes. Photo / Wētā FX
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 the prior year of $107m.
Headquartered in Wellington, the business also has “creative hubs” in Vancouver and Melbourne.
Much of Wētā’s business is supported by Government incentives that allow film producers to claim back 20% of a contract’s value for work undertaken in New Zealand.
While this does not go directly to Wētā, and is not broken down in the accounts, Official Information Act requests in 2018 showed subsidies for Wētā Digital screen work amounted to $40m annually.
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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.