Thunderbird Entertainment is undergoing cost-saving measures, including the “elimination of certain roles,” following a revenue decline attributed to external economic factors like the Writers Guild of America strike.

In a statement, Thunderbird CEO and chair Jennifer Twiner McCarron (pictured) said the company “was put to the test by external pressures that broadly impacted the industry and our business, especially in light of the writers’ strike that, despite not directly affecting our animation division, exerted a negative influence across the sector.”

“In response, we’ve embraced a proactive approach, enacting strategic cost-saving initiatives that enhance our operational efficiency and optimize processes,” she continued. “This strategic realignment ensures our operations are well-suited to the current market dynamics.”

Thunderbird outlined its cost-saving measures in its financial outlook, which included the aforementioned elimination of certain roles, as well as reduced spend on travel and entertainment. “We made a small number of role reductions to keep the business in line with the current needs of the industry and the move to a fully hybrid workflow coming out of the pandemic,” a Thunderbird spokesperson told Playback Daily.

Thunderbird reported a 23% year-over-year revenue decrease in Q1 of fiscal 2024, coming to $33.6 million compared to $43.7 million in Q1 2023. The drop was attributed to a reduction in IP deliveries, which was partially offset by service production revenue.

Free cash flow came in at a loss of $2.4 million, which was a variance of 155% (or $6.8 million) compared to $4.4 million in the previous Q1. The decrease was attributed to the repayment of interim production financing.

Thunderbird completed a strategic review during its previous fiscal year, which determined that the company is in a good position to be acquired. Twiner McCarron previously told investors that any exploration of a sale would likely take place in the 2024 calendar year. The company’s subsidiaries include animation studio Atomic Cartoons and unscripted prodco Great Pacific Media.

Image courtesy of Thunderbird Entertainment