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A recent report by Bloomberg has shed light on internal turmoil at Crunchyroll, revealing that the company’s new management, largely composed of former Funimation executives, allegedly dismissed anime as “kids’ cartoons” and resisted hiring fans of the medium.
Putting things into perspective: Director Kenji Kamiyama, in a recent interview with Animehunch, specifically noted that anime as a medium was something that could be enjoyed by adults too, and was not just for kids.
The revelations come amidst growing dissatisfaction among employees and customers, raising questions about the platform’s direction under Sony’s ownership.
The report by Cecilia D’Anastasio and Takashi Mochizuki’s chronicled the experiences of 18 current and former Crunchyroll employees who described Crunchyroll’s leadership as disconnected from the company’s anime-centric roots.
Executives from Funimation, brought in after Sony’s acquisition of Crunchyroll, have been accused of undermining the passion-driven culture that once defined the platform.
These executives allegedly avoided hiring candidates who identified as anime fans, further alienating the workforce.
Internal data underscores this dissatisfaction. According to a recent employee poll, only 39% of workers felt that management communicated a clear and motivating strategy, a sharp decline from 51% in the previous survey.
Employees reported a growing sense of uncertainty, especially as the company has undergone three rounds of layoffs since the acquisition, with another reorganization planned for early 2025.
The new management’s strategies have also frustrated customers.
Many were outraged when Crunchyroll announced that digital anime purchases made on Funimation’s platform would not carry over during the transition, leaving users without access to their paid content.
Not just that, taking away user generated content, including comments from the platform, and announcing that One Piece anime will soon be moving behind a paywall too were moves that significantly angered their fanbase.
Fallout from Leadership Changes
Since its founding in 2006, Crunchyroll has been a haven for Western anime fans.
The platform transitioned from a site for pirated content to a licensed streaming service for nearly all major anime programs, cultivating a passionate fanbase and a devoted workforce.
Employees worked in anime-themed offices, striking licensing deals and monitoring viewer data in a culture where their voices were heard.
The company’s culture began to shift after Sony acquired Crunchyroll in 2021. The merger of Crunchyroll and Funimation sparked tension between the two companies almost immediately.
In a Zoom meeting announcing the acquisition, Funimation employees referred to Crunchyroll’s origins as a piracy site, according to sources who were present.
In the following months, Crunchyroll’s CEO Colin Decker and General Manager Joanne Waage departed the company, leaving a leadership vacuum that further destabilized the organization.
Vice President of Marketing Markus Gerdemann, a Funimation hire with experience marketing Netflix has been accused of showing very little knowledge of anime. Naturally, has been a controversial figure within the company.
Gerdemann has been criticized by employees for strategic missteps and fostering a work environment described as the “boys’ club.”
These issues have contributed to declining morale among staff and dissatisfaction with the new management structure.
Crunchyroll’s Response and Future
Crunchyroll has defended its recent actions, claiming that its staff has grown by 27%, though it did not clarify whether this figure includes Funimation employees.
The company also stated that it has more than 100 open positions globally, signaling an attempt to address its workforce challenges.
Despite these claims, the new management’s decisions have cast a shadow over Crunchyroll’s future.
With tensions among employees, frustrated customers, and growing competition from streaming giants like Netflix and Disney, Crunchyroll faces a critical moment in maintaining its standing as the leading destination for anime fans in the West.
As the company prepares for meeting targets in 2025, questions remain about whether it can recapture the spirit that once made it a beloved hub for anime enthusiasts.
