An unspecified reduction in staff is planned in the wake of an expected write-down on the November release “Rise of the Guardians.”
DreamWorks Animation will lay off staff in the wake of the weaker-than-expected performance of the studio’s Rise of the Guardians and its announcement Tuesday that it will release two films in 2013 rather than three, sources tell The Hollywood Reporter.
The layoffs, which have been rumored for weeks, are expected to hit the Glendale-based animation studio’s production, technology and overhead functions. Sources say no single film project in development will be targeted, though DreamWorks Animation CEO Jeffrey Katzenberg said in a statement Tuesday that theKate Hudson-Josh Gad-voiced Me & My Shadow, which had been slated for release by Fox in March 2014, is being taken off the schedule indefinitely. Mr. Peabody & Sherman, which was set for a Nov. 1 release, now shifts to the March 7, 2014, slot.
“The move of Mr. Peabody & Sherman means that we will now release two films in 2013, and we are adjusting our operating infrastructure costs accordingly,” Katzenberg said in a statement.
A DreamWorks Animation spokesperson declined to comment on whether layoffs will happen. But sources say plans for an unspecified reduction of the company’s 2,000 or so employees already are afoot and should begin before the publicly traded studio reports earnings Feb. 26.