From a Deluxe press release:

Deluxe Europe announced today that it has entered into an agreement with Technicolor Europe that will ensure continued high quality customer service during the motion picture industry’s transition from 35mm film to digital. With the increasing number of digital screens being rolled out across Europe and film volumes declining, Technicolor will subcontract all its 35mm bulk release printing business in Europe to Deluxe Europe as well as front end services in Italy and Spain.

 

Next installment of Technicolor’s efforts to “optimize” their photochemical film activities. With this announcement, Technicolor is closing its film labs in Rome, Madrid, and London. Its front-end lab in London will be maintained for now. While film distribution is dying business, there still is some money to be made in the foreseeable future (18 – 24 months?), and it will almost all go to Deluxe. As of December 31st, 2010, Technicolor had six labs worldwide.  With this announcement, only one will remain (Thailand).

 

Meanwhile Technicolor announces its plan to cut 600 jobs:

The company said it has accelerated its cost reduction actions, which would result in reduction of around 600 employees globally in 2012.  For fiscal 2011, Technicolor currently anticipates adjusted EBITDA of approximately 475 million euros, lower than prior year’s 505 million euros.

 

It sounds like the job cuts are in its European operations, but information like this likely has a ripple effect throughout the entire company.