The beleaguered movie studio DreamWorks Animation is embarking on a round of sizable layoffs, potentially involving more than 15% of its employee base.
A person with knowledge of the plan confirmed a Los Angeles Times report that the cuts “are expected to include animators, story-board artists and other production personnel and support staff.”
DreamWorks employs about 2,200 people – the Times said more than 350 are likely to be laid off.
A spokesman for the studio declined to comment on Monday, possibly because the cutbacks have begun but are not yet complete.
DreamWorks has racked up a series of disappointments recently, including a relatively weak showing by last November’s “Penguins of Madagascar.”
“It has been unable to build new franchises and its new releases have not been profitable,” said BTIG Research analyst Rich Greenfield.
Talks to sell the company have led nowhere.
“Unfortunately, everyone in the industry sees the predicament DreamWorks is in, making it impossible to sell the company anywhere near current levels,” Greenfield said. “Cutting costs is the only near-term option.”
Two weeks ago the company’s chief creative officer, Bill Damaschke, was replaced by two producers, Bonnie Arnold and Mireille Soria. They are now the co-presidents of feature animation.