Wednesday, February 13, 2013

R&H Closing Causes Panic on Facebook

R&H closing has caused panic amongst the 3D bunnies. They have had jobs for 26 years while the rest of the field suffered, and now that it is their turn, the world is ending. In a sense it is. But we don't really know what is going on so I will find out and report back.


2-13-2013 Late in the day, I had a long discussion with a friend who knows R&H well, the visual effects business well, John and Pauline well, etc.  I am still processing his information.   As I understand it, there is a good chance for R&H to emerge from this, but it is an unfortunate and complicated situation, and whatever happens, it does not look good for LA employment.  Thus in rebuilding, they are more likely to rebuild in, for example, Vancouver, than in LA.  Oddly, Vancouver is more expensive than LA, except for that 60% refund that the Canadian govt provides, of course.   The studios are doing their best to put R&H out of business through their stupidity, but that is nothing new.

2-13-2013 An unauthorized source at the local SIGGRAPH meeting reports talked to two former employees, and quite possibly misheard stuff, but that R&H has laid off 100 - 200 people, mostly older and more expensive people.   The source also speculates that it was the real estate acquisition in El Segundo that caused the problem of cash flow in part.   There is further speculation that R&H may not need more than 100 people in Los Angeles to manage their overseas work force.   This information was from the previous day, I just got it today.

2-12-2013 Late in the day, I read some Facebook posts by people complaining about being laid off after 26 years.   Oh, boo hoo. Welcome to the club, goddamnit.  It is clear that people do not really know what is going on and are spreading rumors.  They need to understand that this is understandable but dangerous.  By spreading rumors, you may be contributing to making a bad situation worse.

2-12-2013 Wall Street Journal article on R&H

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