Legendary 'Star Wars' Studio Abruptly Closed, Franchise in Trouble

The Walt Disney Company has suddenly closed a decades-old Star Wars production studio, potentially laying off hundreds of long-time employees and throwing the future of the franchise in doubt.

When Disney bought Lucasfilm in 2021 for the staggering sum of $4.05 billion, it took control of the incredibly valuable Star Wars and Indiana Jones properties, no doubt expecting to recoup its investment in short measure. While the JJ Abrams-led sequel trilogy and the Disney+ series The Mandalorian were huge successes at the box office and in terms of Grogu merchandise sold.

However, Lucasfilm’s following Disney+ Star Wars series, like The Book of Boba Fett and Obi-Wan Kenobi have not hit the culture in the same way, and it has become increasingly unclear when and if the studio will release a new feature film in theaters.

Now, it seems that Disney has decided it is time to crack down on the franchise.

Related: ‘Star Wars’ Is in Trouble, Accidentally Reveals Glaring Issue in ‘Ahsoka’

‘Star Wars’ VFX Studio Closing

The Industrial Light & Magic (ILM) VFX and animation studio in Singapore was opened in 2004 to develop Star Wars: The Clone Wars (2008) and has been a vital part of Lucasfilm ever since.

However (per Deadline), the studio has been abruptly shut down by Disney, with the company making the official statement that it is “consolidating its global footprint and winding down its Singapore studio due to economic factors affecting the industry.”

Disney is closing down the iconic “Sandcrawler” ILM building in Singapore and has said it will make efforts to relocate the 340 ILM employees that work there, saying it will “give employees as much notice as possible and offer opportunities to relocate to one of the company’s growing studio.”

In addition to The Clone Wars, ILLM Singapore also worked on incredibly significant Disney-owned films like Iron Man (2008) and The Avengers (2012).

Related: Disney Removes ‘Star Wars’ Series From Release Schedule, Entire Show Could Be Canceled

The Future of Disney

It appears that Disney is pulling back hard from the franchise, shutting down the Galactic Starcruiser at Walt Disney World at the cost of an estimated $250 billion after the ambitious two-night LARP experience failed to draw the kind of audiences expects.

At the same time, while Lucasfilm is preparing to roll out a number of Disney+ series like the Rosario Dawson-led Ahsoka and the upcoming The Acolyte, announced plans for Star Wars feature films by Taika Waititi and Patty Jenkins appear to have ground to a halt.

Considering that Disney is in cost-cutting mode everywhere from Marvel to Disney Parks to Indiana Jones, the future of Star Wars is starting to look a bit shaky.

Is Disney backing away from the Star Wars franchise? Let us know your thoughts in the comments below.