Picture from DreamWorks Animation to Cut 500 Jobs
How to Train Your Dragon is a frontrunner for this year's Academy Award for Best Animation. Image ©2014 Twentieth Century Fox Film Corporation

DreamWorks Animation to Cut 500 Jobs

How to Train Your Dragon 2 recently won a Golden Globe for Best Animation. And now is a frontrunner in the 2015 Oscar race for Best Animation. But despite the accolades the studio behind the production is receiving, there’s not a lot of celebration at Dream Works Animation.

The company announced it is cutting nearly 500 jobs, about 18% of its workforce, as CEO Jeffery Katzenberg looks for a way to dig the studio out of debt after several disappointments at the box office.

DWA is also shuttering its Redwood City, California animation studio by the end of the year. Pacific Data Images was acquired by DWA in 2000 and had credits for films like Terminator 2, Angels in the Outfield and Batman Forever before combining forces with DWA. Ants was the first collaborative project between the two California-based companies.

In the early years of the merger, the company earned an Oscar for Shrek and box office success with Madagascar 3. But recent movies including Rise of the Guardians, Turbo, Mr. Peabody & Sherman and The Penguins of Madagascar have misfired with audiences.

Katzenberg also announced that DWA will cut back on the number of feature films it plans to release each year from three to two.

However layoffs are not the only concerns facing the studio. A significant drop in the company’s stock has also left investors worried about the firm’s ability to turn itself around. In a business report, B. Riley analyst Eric Wold calls any investment in the studio “dead money” at least for the next 12 to 18 months.

 

More details about the movies mentioned in this post…

Angels In The Outfield

Angels In The Outfield

Batman Forever

Batman Forever

Rise of the Guardians

Rise of the Guardians

Penguins of Madagascar

Penguins of Madagascar

They are black and white -- and trouble all over.

Madagascar 3: Europe’s Most Wanted

Madagascar 3: Europe’s Most Wanted

Mr. Peabody & Sherman

Mr. Peabody & Sherman

History is about to go to the dogs...

Turbo

Turbo

How to Train Your Dragon 2

How to Train Your Dragon 2

A dragon is a man's best friend.