DreamWorks Animation Cuts 70 Jobs

DreamWorks Animation, headquartered in Glendale, is set to lay off approximately 70 employees, constituting roughly four percent of its extensive workforce, which exceeds 1,700 individuals. This decision comes as part of the studio’s broader cost-reduction strategy and was reported by Deadline. The affected roles span across corporate functions, feature film production, television, and technology departments.

A company statement confirmed the news and clarified that the layoffs are not directly linked to DreamWorks Animation’s recent transition to a mixed-production model. Instead, the decision is attributed to challenges stemming from a downward cyclical turn in the industry, escalating production costs, and ongoing labor strikes. The animation giant had already faced a reduction in force earlier in the year, shedding 33 positions last May.

Among the departments significantly impacted is the television unit known as the “HUB.” Comprising utility artists not attached to specific shows, this group provided essential support and production services across multiple series. Reports indicate that at least two dozen employees were affected within this division. Additionally, the TV post-production and dubbing units experienced multiple layoffs.

It’s worth noting that these layoffs extend beyond traditional terminations. DreamWorks Animation is also reducing headcount by opting not to renew contracts for certain workers, a strategy labeled as “natural attrition” by COO Randy Lake. While the terminology suggests a less abrupt method of staff reduction, the ultimate effect on the company’s workforce remains the same.

The prevailing sentiment among DreamWorks employees is one of tension and uncertainty, with a palpable concern about the potential for additional staff reductions in the months ahead. This atmosphere reflects broader trends observed in the Los Angeles animation industry, where studios are increasingly shifting away from permanent staff models to embrace short-term contract structures. Disney’s recent downsizing through non-renewal of contracts at Walt Disney Animation Studios serves as a parallel example, signaling a broader industry trend characterized by workforce adjustments amidst evolving production practices.

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