Netflix Animation is cutting jobs and halting two film projects that were in pre-production, as the studio rethinks its business strategy. There’s no word yet on how many layoffs are expected.

Tunga, a film from Zimbabwe-born creator Godwin Jabangwe about a young girl who tries to find a mythical city that could save her community from a drought, is being redeveloped in-house. And the other project on pause is Escape From Beverly Hills, which will go back on the market.

The streamer is exploring a shift towards more output deals with third-party producers to fill up its content offering. One early example of this strategy in play might be sci-fi kids series Star Trek: Prodigy (pictured), which Netflix has just acquired. This animated original for Paramount+ about a ragtag crew of young space explorers launched in 2021 and ran for one season (10 episodes). It’s headed to Netflix later this year, and a second season is currently in production at CBS Studios’ Eye Animation Productions, Nickelodeon Animation, Secret Hideout and Roddenberry Entertainment to drop on the streamer in 2024.

The animation industry is struggling right now in the face of rising production costs and a shrinking buyers market. DreamWorks Animation just laid off roughly 70 staffers earlier this week.

Netflix Animation’s restructure comes after a big year for the studio in 2022, when it delivered high-profile films including The Sea Beast, Wendell & Wild and Guillermo del Toro’s Pinocchio (which won an Oscar for Best Animated Feature). The division has released two pics so far this year (The Magician’s Elephant and The Monkey King), and has Leo and High in the Clouds in the pipeline.