Financial problems within United Artists during the aftermath of the Paramount case, caused financial problems within the studio, and by the end of 1948 Lantz had to shut his studio down.[3] The Lantz studio did not re-open again until 1950, by which time the staff was severely downsized.
Beginning with the 1950 feature film Destination Moon, which featured a brief segment of Woody explaining rocket propulsion, Woody's voice was taken over for this and following films by Lantz's wife, Grace Stafford. According to the Lantzes, Stafford slipped a recording of herself into a stack of audition tapes, and her husband chose her without knowing her identity.[3] Lantz also began having Stafford supply Woody's laugh, possibly due to the court case with Mel Blanc. Nevertheless, Stafford was not credited for her work at her own request until 1958 with the film Misguided Missile, as she felt audiences might reject a woman doing Woody's voice. Stafford also did her best to tone down the character through her voice work, to appease Universal's complaints about Woody's raucousness.
Lantz signed again with Universal (now Universal-International) in 1950, and began production on two Woody Woodpecker cartoons that director Dick Lundy and storymen Ben Hardaway and Heck Allen had begun before the 1948 layoff. These shorts have no director's credit, as Lantz claimed to have directed them himself (despite the fact it has been speculated to be directed by another). Puny Express, released by Universal-International in 1951, was the first to be released, followed by Sleep Happy. These shorts marked a departure from the dialogue-driven shorts of the past. Though Stafford now voiced Woody, her job was limited, as Woody (as well as the rest of the characters) rarely spoke in the first dozen or so shorts. It was because of these shorts that Woody became very popular outside the English-speaking world, thanks to the lack of a language barrier (The Pink Panther shorts of the 1960s and 1970s would also enjoy worldwide popularity due to this pantomime luxury).
Nine more Lantz-directed Woody cartoons followed, before Don Patterson became Woody's new director in 1953. The bird was redesigned once again for these new cartoons, this time by animator LaVerne Harding. Harding made Woody smaller, cuter, and moved his crest forward from its original backwards position (although Woody had sported this look since 1947, as seen in the still from Wet Blanket Policy above). (The small Lantz Studios logo seen at the start of every cartoon - Woody as an armored knight on horseback carrying a lance - continued to display Woody with his old topknot for a while.) For 1955's The Tree Medic, one last makeover was given to the woodpecker, making Woody's eye a simple black dot and taking away the green/hazel iris he'd had since his beginnings. However, Woody's eyes were not changed in the cartoon's intros, and they remained green for the rest of the shorts' production run. During this time, the intro was changed as well. Instead of having Woody's name on screen and Woody pecking a hole in the screen to introduce himself, Woody would peck his way onto the screen, say "Guess who?", peck his name on either a brown or gray wood background, and flop around the screen laughing.
By 1955, Paul J. Smith had taken over as primary director of Woody's shorts, with periodic fill-in shorts directed by Alex Lovy and Jack Hannah, among others. With Smith on board, the shorts maintained a healthy dose of frenetic energy, while the animation itself was simplified, due to budget constraints.
