Amid rumors that Santa Maria-based visual effects studio CafeFX is shutting down, CEO Jeff Barnes released the following statement to explain recent downsizing and cost-cutting measures.
"As we all know, the industry in California is experiencing a radical course correction as globalization, commoditization, foreign incentives and the economy continue to challenge our country and our state. Labor costs need to come down, overhead reduced, specializations realized, new partnerships solidified and smarter pipelines implemented.
"That is precisely the process we are incorporating during what are historically slower months in our business. We have reluctantly reduced our headcount so that we can implement these changes effectively and responsibly, and at the same time make sure that commitments to our employees and clients are successfully fulfilled along the way. We are carefully vetting our current and go-forward options so that we can move ahead with a viable, adjusted model."