DreamWorks cutting 500 jobs in restructuring

Jeffrey Katzenberg
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Jeffrey Katzenberg

DreamWorks Animation on Thursday said it would cut 500 jobs across all locations as a part of a "strategic plan" to restructure its feature film business.

The studio will also take a $290 million pretax charge and reduce its feature production from three films per year to two. Its core feature animation production will now focus on six specific movies for the next three years, DreamWorks said in a statement.

The restructuring is expected to be substantially completed by the end of this year.

With an estimated annualized pretax cost saving of $30 million this year, the plan will help DreamWorks maximize its creative talent and resources, reduce costs, and drive profitability, the statement said.

"The No. 1 priority for DreamWorks Animation's core film business is to deliver consistent creative and financial success," said the company's CEO, Jeffrey Katzenberg.

DreamWorks shares rose more than 3 percent in after-hours trading on the news.