DreamWorks is going to cut around 10 percent of its staff as it scales back productions under a new financing deal
DreamWorks is preparing pink slips as it scales back productions, an individual with knowledge of the situation told TheWrap.
The individual said that the the boutique studio is preparing to lay off roughly 10 percent of its 80 person workforce in the next few days. As part of the downsizing, Steve Molen has resigned as head of physical production; he is not expected to be replaced.
A DreamWorks spokesperson declined to comment on any possible layoffs, but said, "like every other business we’re always focused on allocating our resources to address the company’s evolving needs."
DreamWorks recently extended its financing deal with Reliance Entertainment. The renewed pact brought the studio roughly $200 million in new funding.
DreamWorks has opted to dial back on the number of films it produces from 4 to 6 a year to between 3 and 5. With fewer films being produced, DreamWorks has decided it must scale back its staff.
Reliance first invested $325 million in DreamWorks three years ago in exchange for a stake in the studio.
The original deal was structured to allow Reliance to pause and assess its investment before committing to additional funding.
As it waited to find out if Reliance would commit to another round of funding, DreamWorks put fewer films into its production pipeline. The studio will release two films in 2012, "Lincoln," a biopic of the 16th president directed by Steven Spielberg, and "People Like Us," a drama starring Chris Pine.