Popular Streaming Service Hit With Layoffs

Crunchyroll is about to begin massive layoffs. Variety reports the anime streamer has laid off employees as the company focuses on international growth markets.

Despite layoffs, they plan to create additional jobs. Crunchyroll also plans to establish tech hubs in the U.S., Mexico, and India as part of their expansion.

The report notes that the company’s president, Rahul Purini, announced the news in a memo, which notes they currently boast more than 1,000 employees but has not disclosed an exact headcount number. Their fast-growing markets include India, Brazil, Mexico, Europe, and Southeast Asia.

“As we look toward the next three to five years, we believe the right path forward is a new organizational model that supports regionally-empowered teams to lean into anime fandom even further,” Purini wrote in the memo. As such, “some of our colleagues will be departing the company, some will be expanding their scope, and some will be assigned new roles.” He said the layoffs are “not a cost-cutting measure or driven by financial performance.”

“There is a tremendous opportunity ahead of us and these changes are about proactively setting up for scale and success,” Purini’s memo concluded. “I know this is difficult, and appreciate the space you will give for grace, respect and kindness to one another. We’ll regroup as a team at the end of the day and tomorrow morning to talk more about what this means and what comes next. I am confident we are well poised for Crunchyroll’s role in serving anime fans around the world.”

Job cuts will happen across all of Crunchyroll’s 13 offices in nine countries in North America, Europe, and Asia. L.A.-based Crunchyroll currently has more than 100 open job positions worldwide, with more roles being added over the next few months. Outside of new tech hubs, Crunchyroll will invest in growth opportunities in collectibles, merchandise, and manga. New initiatives and releases are also underway, which include Crunchyroll’s plans to launch a digital manga service as part of its subscription tier later this year. 

Sony acquired the anime streamer Funimation in 2017 before buying Crunchyroll in 2021 for $1.18 billion in cash from AT&T. Funimation was founded in 1994.