After five years in existence, Fox Animation Studios is laying off nearly

70% of its Phoenix-based toon factory's staff. The restructuring of the

animation department will include more contract work outside the studio.

President of animation at Fox, Chris Meledandri said a foundation of 65-100

of the now 320 employees will remain, including, of course, studio staples

Don Bluth and Gary Goldman. Fox will continue to perform pre-production

work including storyboarding, character design, production design and

layout work. Key animation and editing will also be done at the Phoenix

studio. All additional work after key animation and special effects will be

subcontracted outside of Fox. The new animation division is sending home

many of the animators they recruited from around the world five years

prior. Thus far the division has only produced ANASTASIA and its

direct-to-video spinoff BARTOK THE MAGNIFICENT. The upcoming TITAN A.E is

currently finishing up production after several false starts. "It's very

difficult to let people go who have worked so hard and done such good

work," Meledandri said. "We are currently helping in as many ways as we

possibly can to find them other work and help them transition to their next

opportunity." It is possible that some staff will move over to sister

company, Blue Sky Studios, to help on their new fully-digital feature

entitled ICE AGE.