The Quebec animation industry: One of the first victims of austerity

The animation industry relies heavily on subsidies from various governments, a veritable race to the bottom to see who can dish out the most cash to attract studios to hire in their regions.

  • Calvin B.
  • Wed, May 7, 2025
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On April 1, me and my coworkers were called into a meeting and learned that our animation studio is closing, and we would be out of a job. This is after a mass layoff in late August of last year, but now all of our jobs are gone. The reason we were given was that, after two years of successive cuts to subsidies to animation production in Quebec, banks were no longer willing to give loans at competitive rates and this forced the closure.

As far as industry standards go, these were quite good jobs. We had seven-hour days, fairly competitive wages (for an industry that is quite underpaid) and a great set of coworkers. We also made great art, often getting compliments from our clients who were very happy with the quality and the speed of our work.

Sadly none of that mattered to the uncaring forces of the market and the need to maintain profit margins. The animation industry relies heavily on subsidies from various governments, a veritable race to the bottom to see who can dish out the most cash to attract studios to hire in their regions.

One might think that this would mean animation studios are quite stable, since they can get fat off the government dole. However, since they are in competition with a multitude of other studios (who are equally subsidized by their governments) over contracts, this pushes prices low and margins very thin. This money does not “trickle down” and doesn’t even provide stable jobs! Instead of creating jobs, at very best subsidies just move them across a border.

In this time of austerity and privatization governments everywhere are trying to make cuts to social services and spending in general. In Quebec, the CAQ has made major cuts to these subsidies, but I have no hope in whatever government we have in 2026 changing things. Capitalism requires austerity, and none of the major parties are willing to break from capitalism or its logic.

To be honest, animation and VFX are small fish in Quebec and Canada, and in the context of a trade war, cuts to social spending and a looming recession, we are going to see much bigger and more important companies closing and laying off workers. If we don’t want other industries to follow the Quebec animation industry, we need to be ready to fight against these attacks with mass movements, strikes and workplace occupations!

-Calvin B., Montreal