Walt Disney is closing down its Blue Sky Studios. Blue Sky is the animation company inherited by Walt Disney during the 2019 acquisition of 20th Century Fox.

Blue Sky, which was founded in 1987, rose up in popularity for helping in growing top-grossing franchises including Ice Age, Horton Hears a Who, and most recently Spies in Disguise.

Variety reported that due to the closing down, about 450 employees from the studio will face terminations. Though there are possibilities of some of them taking up positions at other Disney holdings.

“Given the current economic realities, after much consideration and evaluation, we have made the difficult decision to close filmmaking operations at Blue Sky Studios,” a Disney spokesperson told Variety.

The coronavirus pandemic has impacted Disney's financial strength, given the reliance on theme parks and global theatrical business.

Other than Ice Age, the studio also produced Anne Hathaway, George Lopez starrer Rio. The studio began to grow in popularity due to titles like Alien Resurrection and Fight Club.