In February 2008, Polaroid announced it would discontinue production of film, shut down three factories and lay off 450 workers.[2] Sales of chemical film by all makers have dropped by at least 25% per year in the first decade of the 21st century, and the decline is likely to accelerate. Fujifilm is now the only remaining supplier of instant film in the United States. However, in October 2009, Polaroid announced it would bring back its classic instant film cameras, after announcing the year before that production was to be stopped.[3]

On January 5, 2010, Polaroid partnered with Lady Gaga, appointing her as Creative Director for the company. A press release stated that she would be the "new face" of Polaroid.[8]

Since March 2010, instant film materials for Vintage Polaroid cameras have again become available on the market, developed and manufactured by a group called Impossible, at the former Polaroid production plant in Enschede, The Netherlands.