DNEG, VFX Firm Urges Staff to Accept 25% Pay Reduction or Join Loan Program Amidst Strikes’ Disruption

EXCLUSIVE: Breaking News: DNEG, the powerhouse behind the mind-blowing visual effects in blockbusters like Dune and Oppenheimer, is facing a major crisis. After recently laying off numerous employees at its London headquarters, the company is now asking its staff to take a hit to their paychecks. With work grinding to a halt due to strikes, DNEG is giving its 10,000 employees worldwide a tough choice. They can either accept pay cuts of up to 25% for seven months (with higher percentages for higher salaries) or opt for a loan scheme. Those who can’t afford the cuts will receive a larger reduction but will be loaned back the majority, which they will repay over three years. It’s a difficult decision that could determine the fate of their contracts. The clock is ticking, as employees have just 11 days to make up their minds. If they don’t agree to the measures, their contracts may be terminated. This move has sparked anger among unions and workers, who feel that DNEG is unfairly burdening its employees. The Animation and VFX branch of broadcasting union Bectu is even hosting an emergency Zoom meeting to discuss taking action against the enforced pay cuts and loan scheme. The union reminds its members that imposing a pay cut without consent is illegal. This isn’t the first time DNEG has resorted to pay cuts. During the early months of the Covid-19 pandemic, the company implemented similar measures, saving around $24.5 million. Employees who have weathered both the pandemic and this latest crisis are understandably furious. They feel that DNEG is not doing enough to support them and is instead shifting the burden onto their shoulders. It’s a tough situation for everyone involved, but DNEG believes that these measures are necessary to preserve as many jobs as possible. The company’s latest financial results showed impressive growth, but the economic landscape has drastically changed since then. The strikes have dealt a severe blow to the VFX industry, resulting in a significant loss of work for multiple firms. DNEG acknowledges the concerns and uncertainty among its teams and community and wants to address the changes honestly. The company recognizes the challenges faced by the film and television industries and the studios that support them. In order to weather this storm, DNEG has asked all employees, including senior executives and creative leaders, to take short-term pay cuts. This decision was not made lightly, but it is seen as the best path forward to protect as many jobs as possible. DNEG hopes that these measures will help them navigate the current challenges and emerge stronger in the future.