The Mill will instead concentrate on making adverts. Despite opening a US office in July Robin Shenfield, CEO of the Mill, blames the inherent volatility of the film business for the decision.
Robin Shenfield, CEO of the Mill, said: 'It's a sad decision but we feel now is the time for us to get out of film. The level of inward investment from the US fluctuates and we're totally dependent on the US.' Shenfield said that this year's production of only two substantial films in the UK - Bond and Potter - showed the vulnerability of the industry.
Shenfield said 35 to 40 jobs at Mill Film were at risk but he hoped to find new roles for a number of people.
A source from another leading UK facility said: "It is a great shame because they were showing the world what London is capable of. There is not enough consistent work, which means you are constantly hiring and firing people which is unsettling for everyone. Having a core permanent staff is very expensive."
In May of this year the Mill began centralising its operations into the Soho studios. In November 25 people were made redundant but Robin Shenfield denied the company was in trouble - he described the year as 'just different'.
Tim Burke and Rob Harvey of Mill Film won an Oscar in 2001 for best visual effects on Gladiator.