Disney’s creative studio Creative Reality is closing its doors, marking the end of the studio’s nearly decade-long run in Hollywood.CEO Michael Lynton said Friday that the studio would be shutting down operations and laying off 20% of its workforce.
Lynton confirmed that the creative studio will close operations for good in 2018, but did not specify when or where it will close.
Lynton told employees that the company would begin restructuring to become more of a content production and licensing company.
He declined to say what changes would be made to the company’s business model or where Creative Reality will relocate.
The company will likely focus on building out its digital and mobile brands, including the acquisition of the mobile ad agency and the launch of a new streaming TV service.
The new services are expected to offer programming including the “Star Wars: Clone Wars” animated series and the “Frozen” film.