All week there have been rumors that CafeFX is closing. Today Jeff Barnes responded to this chatter by way of David S. Cohen at Variety who said via Twitter (@Variety_DSCohen):
Jeff Barnes of CafeFX texted me they are “downsizing and retooling, not closing.” and “Barnes of CafeFX also writes “We did NOT lay everyone off. we are still working on a project.” He says no more comments for now.”

Cohen also mentions he may have more in Wednesday’s TechBytes column in Variety. You can follow the conversation on twitter by using a search for CafeFX via this link.

Update March 23rd:
David S. Cohen’s followup article is in Variety today. He confirms with Jeff Barnes that the Santa Monica location has been closed and that they have “reluctantly reduced” their headcount, but are not closing.

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