In the aftermath of World War II, Walt Disney Studios faced financial difficulties due to a lack of foreign markets for animated films during wartime. The studio produced few theatrical animated shorts then, focusing instead on military training films that broke even, but produced no profit. The studio only profited in 1945 and 1946 by reissuing "Snow White and the Seven Dwarfs" and "Pinocchio", and still had to lay off half of its employees in 1946. With additional financial difficulties due to a union strike in 1941, Disney sought to produce live-action films to generate additional revenue. While Disney's contract with RKO was for animated films, films that mixed live-action with animation fell under the contract, allowing the studio to lower production costs on "Saludos Amigos" and "The Three Caballeros". Additionally, Disney owned the rights to several properties purchased after the success of "Snow White", which could be made into family films.