A glowing cosmic vortex with a yellow pencil, film reel, and cartoon frames featuring vintage black and white animation characters floating around it.

The animation industry is not in a complete downfall but is currently experiencing a downturn due to a combination of post-pandemic overproduction, economic pressures, and strategic shifts by streaming services. Factors like increased competition, a move from content quantity to profitability, mergers and restructuring, and the lingering effects of the 2023 strikes have led to layoffs, canceled projects, and general uncertainty for animators and studios. Despite these challenges, the overall animation market is projected to continue growing in the long term, and the industry has historically navigated and adapted to cycles of decline See more