Two of Japan’s largest video production companies are cutting hundreds of jobs and exiting their TV post-production businesses as broadcasters slash budgets and freelancers disrupt the market.
IMAGICA Lab., part of IMAGICA Group, plans to shed up to 150 employees, or about 30% of its workforce, through voluntary retirement. The company cited declining television viewership and intensifying competition from independent contractors as key factors behind the exit.
Meanwhile, Omnibus Japan, a subsidiary of Tohoku Shinsha, has already identified 76 staff members for its voluntary retirement program, targeting workers in its post-production division. Tohoku Shinsha expects to book a ¥1.3 billion ($9.1 million) special loss from the restructuring.
Omnibus Japan will close its facilities in Shinbashi and Shibuya to focus on digital production, including computer graphics and visual effects. The shift reflects a broader industry transformation as traditional TV production houses struggle with shrinking budgets and technological disruption.
The job cuts highlight the challenges facing Japan’s legacy media companies as they grapple with changing viewer habits and new market dynamics. Industry observers expect further consolidation as companies abandon unprofitable segments to survive.
