DreamWorks Animation Planning Significant Job Cuts

The layoffs are part of a studio-wide initiative to cut operating costs

DreamWorks Animation is expected to lay off a significant number of staff from its Glendale and Redwood City, California campuses, according to media reports.

The move comes amid an attempt to cut operating costs, and is expected to be north of 350 employees, which is how many were cut the last time the company went through a major round of layoffs, in 2003.

The company currently employs around 2,200 people. Among those who will receive layoff notices are animators, storyboard artists and other production personnel and support staff, according to the LA Times.

This year, Jeffrey Katzenberg‘s company has seen “How to Train Your Dragon 2″ hit $618 million at the worldwide box office, while “Penguins of Madagascar” and “Mr. Peabody and Sherman” failed to meet expectations. The latter forced a $57 million write down in April, and last year’s “Turbo” and 2013’s “Rise of the Guardians” also sank deeply into the red.

Earlier this month, veteran producers Bonnie Arnold and Mireille Soria were named co-presidents of feature animation, replacing Bill Damaschke, who exited as the studio’s chief creative officer.

A studio representative declined to comment.

The first DWA release of this year will be “Home,” set for March 27, with “B.O.O.” following on June 5.

“Kung Fu Panda 3″ had been set for December 2015, but was recently shifted to March 18, 2016, to avoid challenging “Star Wars: The Force Awakens.” The first two “Panda” films were major moneymakers, generating $1.2 billion at the global box office.

The studio has recently drawn interest from suitors including toymaker Hasbro and Japan’s Softbank for a sale or merger, but nothing has materialized.

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