DreamWorks Animation announced that it would cut 500 jobs, more than 20 percent of its staff, due to a recent spate of box office disappointments.
The company also said it would take a $290 million charge in connection with the layoffs, which will cut across all locations and divisions of the studio. The restructuring plan is expected to be substantially complete by the end of 2015 and result in annualized pretax cost savings of about $30 million in 2015, growing to roughly $60 million by 2017.
Cartoon Brew is reporting that the PDI studio will close, with its staff offered the chance to move to the Glendale, Calif. headquarters. PDI had produced and developed the two "How to Train Your Dragon" films.
As part of a full review of its business, DreamWorks also announced a restructuring of its core feature animation business. The company, known for successful animated movies such as "Shrek" and "Kung Fu Panda," said it is narrowing its focus to one original film and one sequel each year.
"The No. 1 priority for DreamWorks Animation's core film business is to deliver consistent creative and financial success," said DreamWorks Animation 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."
The studio took a $57 million hit last year for its animated feature "Mr. Peabody & Sherman," and a $13.5 million loss on its summer movie "Turbo." Those losses followed an $87 million hit for the 2012 "Rise of the Guardians" holiday film.
