Disney to shut Japan Animation Unit

In an internal memo distributed Friday, Disney revealed its plans to shut down the animation facility, which employs 103 local animators and artists. The closure will take effect once the studio completes work on its current project, a "Winnie the Pooh" spinoff called The Heffalump Movie. It has not yet been determined whether that project will be a theatrical or video/DVD release.

In a statement, Disney acknowledged the studio's closure but added: "Our experience working in Japan for the past 14 years has been outstanding, primarily because of the world-class artists and executives who have produced exceptional animation. However, after reviewing our business plans and production requirements, we determined we no longer can support this additional production capacity."

The Japanese studio produced features for DisneyToon Studios, the Disney division charged with creating spin-off properties from established Disney characters. Disney recently laid off about 50 animators at its Orlando animation studio following the completion of Brother Bear, a 2-D animated feature that will debut in limited release Oct. 24 and then roll out in November.