DreamWorks Animation is Floundering, Employees Paying the Price
After a string of misfires at the box office, DreamWorks Animation is in a state of financial distress, and the only way to alleviate it is another string of layoffs.
The LA Times has learned from anonymous sources on the inside that, while the exact number of impending layoffs is unknown, it will likely exceed the 350 who were let go in 2013 when the studio halted production on the movie Me and My Shadow. The layoffs are expected to include animators, storyboard artists and other support staff at the studio’s facilities in Glendale and Redwood City, where over 2,200 workers are employed.
DreamWorks Animation found early success when it was founded two decades ago, with franchises such as Shrek, Kung-Fu Panda and Madagascar driving huge box office grosses. But the studio has reported three write-downs in the past two years – Rise of the Guardians, Turbo and Mr. Peabody & Sherman – and Penguins of Madagascar has performed below expectations since its release in November.
CEO Jeffrey Katzenberg has been trying for some time to sell the company, so far without any success.
via LA Times