Toei Animation Co. established its second domestic production facility in Osaka, a response to what executives describe as an urgent need to recruit animators beyond Tokyo as Japan’s animation industry confronts a deepening talent crisis.
The Dragon Ball and One Piece producer will initially focus the new studio on background art, with managing director Kiichiro Yamada stating plans to gradually expand operations to match the company’s main Oizumi facility. The move comes as Japan’s animation sector faces chronic labor shortages linked to poor working conditions that have reduced production capacity, according to industry reports.
Despite the anime market’s explosive growth to 2.74 trillion yen ($18.9 billion), animators earn starting salaries of just 1.5 million yen ($10,300) annually, creating what critics call unsustainable working conditions. Industry data shows 25% of new animators leave within four years, with 68% departing after eight years due to excessive hours and low compensation.
The Osaka expansion aligns with Toei’s broader $2 billion international growth strategy and reflects industry-wide efforts to address production bottlenecks. However, the studio’s emphasis on recruiting from Japan’s Kansai region may do little to resolve underlying compensation issues that have prompted government intervention and UN scrutiny of working conditions.
Whether geographic expansion can substitute for fundamental labor reforms remains questionable as the industry’s structural problems persist.
