DreamWorks tempers ambition
Print Edition
DREAMWORKS Animation SKG Inc will cut about 500 jobs, more than a fifth of its workforce, and produce one fewer movie a year as part of a major restructuring after a string of box-office misses.
DreamWorks, which held unsuccessful buyout talks twice last year, said it plans to produce two feature films per year, down from three, and close its Northern California studio.
“We believe that our efforts to make three films each and every year was just too ambitious and has led to inconsistent performance,” CEO Jeffrey Katzenberg said.
The maker of the “Shrek” and “Kung Fu Panda” franchises has reported losses in two of the last four quarters, as movies such as “Rise of the Guardians” flopped.
DreamWorks has faced increasing competition for family audiences as other studios have turned out hit animated films.
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