Former Crunchyroll Employee Terminated for Misconduct

Crunchyroll, a major player in anime streaming, is facing new allegations regarding its workplace culture.

A former employee claims they were terminated after raising concerns about a hostile work environment.

Shawn Hoffman's Allegations

Shawn Hoffman, a former Senior Software Engineer at Crunchyroll, alleges that he faced retaliation and was ultimately terminated after requesting an ADA accommodation for his anxiety and diagnosed major depressive disorder.

He shared that this occurred while his mother was diagnosed with terminal cancer, compounding the already difficult situation.

He wrote that shortly after requesting the accommodation, he encountered hostility, including an incident where a manager, to whom he didn't report, cursed at him and made an obscene gesture. His post includes a screenshot of the event showing the manager making the gesture, along with the manager's name.

Hoffman further claims that after documenting and reporting the incident to HR, he noticed a change in how the company treated him.

He also writes that Crunchyroll cited a "policy violation" as the reason for his termination, while the manager remains employed. He also alleges they offered him a severance package in exchange for his silence.

Hoffman's Contributions to Crunchyroll

Hoffman joined Crunchyroll in early 2024. In a post two months after joining, he highlighted the following contributions to the company during that time:

[list][*]Developed a high-quality video encoding and packaging pipeline to improve the streaming experience for users.[*]Shut down illegal streaming and piracy apps to protect the hard work of content creators.[*]Contributed to hiring decisions as part of the interview panel to bring in new talent.[*]Resolved a major production incident, ensuring minimal disruption for customers.[*]Helped secure a strategic partnership in Asia, expanding the company's reach.[*]Built a new Content Delivery Network, improving customer satisfaction and reducing latency.[*]Planned streaming capacity for Demon Slayer Season 4 to ensure a smooth experience for fans.[/list]

Further Turmoil at Crunchyroll

Hoffman's claims come at a time when Crunchyroll is already facing internal turmoil. According to a recent Bloomberg report, Crunchyroll has undergone at least three rounds of layoffs since its acquisition by Sony in 2021.

The transition has reportedly been rocky, with many Crunchyroll executives being replaced by Funimation counterparts and external hires. Employees have described the new leadership as out of touch with both the staff and the anime community.

Further Challenges for Crunchyroll

Furthermore, according to the same Bloomberg report, Crunchyroll is not expected to meet its ambitious goal of reaching 25 million subscribers by the end of 2025 ("25 by 25"). Insiders cited fierce competition from Netflix, Disney, and Amazon, as well as difficulties in expanding into new markets, as reasons why.

The company's push into gaming and merchandising has also faced setbacks, with layoffs reported in both sectors last summer.

The Bloomberg report also highlighted misconduct allegations against Markus Gerdemann, a Senior Vice President, who is accused of fostering a "boys' club" atmosphere, lowering team morale, and engaging in sexist behavior. An internal investigation reportedly found no wrongdoing after two misconduct reports were filed against him.

Acquisition Background

Sony acquired Crunchyroll in 2021, later merging it with Funimation. On January 7th of this year, the company closed a 50 billion yen deal with KADOKAWA to become its largest shareholder, with approximately 10% ownership.

The company also recently announced a new Crunchyroll Manga app, for now only in the USA.

Source: Shawn Hoffman on LinkedIn