Laughing Dragon closes after 23 years in Montreal

Published on January 06, 2026 | Translated from Spanish
Empty animation studio building with faded Laughing Dragon logo at the entrance, sunset in Montreal

The Sunset of an Animation Giant in Montreal

Laughing Dragon Studios, a benchmark for 2D animation for over two decades, has ceased operations in the Canadian city. Founded in 2001, this studio participated in iconic productions such as Central Park for Apple TV+ and Disenchanted for Disney, establishing itself as one of the creative pillars of Quebec. Its closure reflects the structural changes affecting the audiovisual industry in the region.

Factors Behind the Definitive Closure

Ryan Sohmer, co-founder and CEO, attributed the decision to modifications in Quebec's public policies. The reform of the tax credit system, which favored live-action film over animation, eliminated the economic support that allowed the studio to operate. This situation is part of a critical context for the sector, where over 50% of specialized jobs disappeared between 2022 and 2024.

"Our team built stories that transcended borders, but even passion cannot compensate for the lack of institutional support"

Consequences for the Creative Ecosystem

The studio was not the only one affected by this transformation. Other companies like On Animation and Mikros Animation also closed, generating a domino effect that impacted hundreds of professionals. Although Laughing Dragon attempted to adapt—by reducing and then recovering part of its workforce—the efforts proved insufficient in the face of the new market conditions.

Empty animation studio building with faded Laughing Dragon logo at the entrance, sunset in Montreal

Legacy and Transformation of the Sector

While traditional studios disappear, new technologies like artificial intelligence are redefining creative processes. Tools that automate repetitive tasks allow for production with smaller teams, although this raises questions about preserving the manual art that characterized studios like Laughing Dragon.

The closure of Laughing Dragon marks the end of an era, but also the beginning of a deep reflection on the value of animation as an artistic discipline. In a world where the digital and automated gain ground, the legacy of this studio remains in the works it created and the professionals it trained.