Reports: DreamWorks Animation Priming For Next Round Of Layoffs

(RTTNews) - Entertainment Studio DreamWorks Animation SKG Inc. (DWA) is priming for another round of layoffs very soon, which is expected to be higher than the one in 2013, according to media reported on Monday.

The beleaguered studio is said to be laying off animators, storyboard artists and other production personnel after taking hefty writedowns amid a string of box-office disappointments in recent years.

Some of the movies that took a battering at the box-office were Mr. Peabody & Sherman, Rise Of The Guardians, Turbo, and Penguins of Madagascar. It also shelved the film Me and My Shadow.

Though the final number to be laid off is unclear, it is projected to be above the 350 workers laid off in 2013, which were the first layoffs in the company's history. Media reports peg the number at about 400 employees to be laid off from the company's current workforce of about 2,200. The "compartmentalized" layoff notices are said to have reportedly started to go out last week.

The move comes close of the heels of major management level changes and months after the company failed in its bid to find a buyer for the company. DreamWorks had merger discussions with Japan's third-largest mobile carrier Softbank Corp. (SFTBF, SFTBY), toymaker Hasbro, Inc. (HAS) and conglomerate 21st Century Fox Inc (FOXA, FOX). All three cooled off after initial talks.

The company also named Bonnie Arnold and Mireille Soria as co-Presidents on January 4 after Chief Creative Officer Bill Damaschke resigned. The newly named co-Presidents are currently looking to move forward by reducing production budgets and other overhead at the company.

Glendale, California-based DreamWorks Animation is the studio behind the lucrative Shrek, Kung Fu Panda and How to Train Your Dragon franchises. How to Train Your Dragon 2 was last week nominated for an Oscar for the best animation picture after recently winning the Golden Globe in the same category.

DWA closed Friday's regular trading session at $22.16, up $0.84 or 3.94% on a volume of 0.53 million shares.