A scene from House of the Dragon. Photo: Supplied
Wētā FX has proposed changes to 100 jobs in its support departments, largely based in Wellington.
The company, a global leader in special effects, employs about 2000 people globally, and it says most of these are contractors not affected by the changes.
It said it informed staff on Thursday, beginning a consultation period after which changes would be confirmed after staff feedback.
The changes would take effect from different dates, the company said, depending on individual agreements.
It blamed a number of factors for the changes, including the current challenges facing the global entertainment industry.
Among them, unexpected delays in projects being greenlit due to financial considerations, the industry continuing to feel the long-tail impact of the Covid-19 pandemic, industry strikes, and changes in audience content consumption habits.
A Wētā FX employee - caught up in the cuts - said staff were told the move was necessary to ensure the company's survival.
They said Wētā FX was "one of a kind" in New Zealand and many employees would be unable to find similar roles in the sector.
"My fear is that I will have to leave New Zealand in order to find more work. It sucks."
They said the news came at a difficult time - in the middle of a big push to complete work on Avatar 3.
The staff member said there had been warning signs such as notifications the firm would have to cut costs and perks like food and Friday drinks disappeared in the months leading up to the announcement.
"The vibe is terrible. We're surrounded by good people and we are supporting each other [but] morale is very low," they said.
Wellington Mayor Tory Whanau said she was saddened to hear of the cuts.
"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.
She said the council was ready to work with the Government to enhance the New Zealand Screen Production Rebate scheme to help the local sector compete internationally and attract a greater number of productions.
Founded by Peter Jackson, Richard Taylor, and Jamie Selkirk in 1993, it is famous for its award winning work on productions such as Heavenly Creatures, Lord of the Rings, King Kong and Avatar.
It has also received Emmy nominations and had wins for TV series such as The Last of Us, Game of Thrones, House of the Dragon, and Ripley.
Late last year The New Zealand Herald reported Wētā FX had made net losses of up to $190 million across the previous two years.
In 2023 billion-dollar global game tech Unity Software cut ties with Wētā Digital, leading to 265 redundancies.
At the time a Wētā FX spokesperson said the business was aiming to hire as many of the staff back as possible.
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