Hollywood film giant Warner Brothers has shut down its New Zealand office and outsourced its distribution arm.
Although Warner Brothers will not say why it has left New Zealand, or how many staff will be affected, the company sent ONE News a statement that confirmed their Ponsonby office closed at the end of May.
The statement reaffirmed its commitment to New Zealand and said that its business would be outsourced to a local company.
Opposition parties say the move is a slap in the face for New Zealand, given that the Government changed employment law and provided tax breaks to get Warner Brothers to make The Hobbit films here.
Prime Minister John Key was unaware Warner Brothers video was leaving.
"The Hobbit films have created 3000 jobs. They were crucial to New Zealand for our movie industry; it was a very positive step that the Government took. I'm not sure what has happened in Auckland but I don't imagine its many jobs," Key said.
The Green Party says the closure undermines the Government.
"The Government forced through a law change and Warners, in return, has closed down their office. Thanks very much Warners," said Green Party co-leader Russel Norman.
Labour says it is hugely embarrassing for the Government.
"Now that The Hobbit's finished, they are pulling out and heading to Australia and you've got to ask why that is," said Labour's Broadcasting spokeswoman, Clare Curran.
According to the Companies Office, Warner Brothers has been operating in New Zealand since 1947.
However, lack of a physical office here does not worry Peter Jackson's production company Wingnut. The company said it continues to feel fully supported by Warner Brothers.