DreamWorks Animation officials confirmed Thursday the company will lay off hundreds of workers, and as part of its cost-cutting strategy, reduce its feature film production from three films a year to two.
“The number one priority for DreamWorks Animation’s core film business is to deliver consistent creative and financial success,” said company CEO Jeffrey Katzenberg. “I am confident that this strategic plan will deliver great films, better box office results, and growing profitability across our complementary businesses.”
According to DreamWorks, the company will eliminate 500 jobs.
The restructuring plan is expected to be completed by the end of the year and result in pre-tax savings of about $30 million this year, growing to about $60 million by 2017.
The studio plans to produce six films over the next three years — one original film and one sequel each year. In 2016, DreamWorks plans to release “Kung Fu Panda 3” and “Trolls.” The following year it will release “Boss Baby” and “The Croods 2,” followed by “Larrikins” and “How to Train Your Dragon 3” in 2018.
DreamWorks’ “Home” is scheduled for release March 27. Another film, “Captain Underpants,” will be produced “outside the studio’s pipeline at a significantly lower cost” and released in 2017.
