Reports: Sizable layoffs expected at DreamWorks Animation

dreamworks.jpgThe decision to release just two films this year instead of three means all sorts of operating adjustments that could result in cutting as many as 500 positions at the Glendale-based studio, Deadline reports. That would be a 23 percent hit. The trims come after less-than-terrific numbers from last fall's "Rise of the Guardians" (a big write-down is expected). Investors aren't thrilled - not so much at the prospect of layoffs (sometimes Wall Street considers that a good thing), but at changes in the release schedule. "Mr. Peabody and Sherman" is being moved back to Spring 2014 from late 2013, and "Me & My Shadow" is being removed from the 2014 slate. Shares are down almost 4 percent today - going back to the trough of the market on March 9, 2009, DreamWorks is one of the few locally based companies to still be on the minus side (about 15 percent). This is what happens when a publicly traded movie studio is so reliant on so few releases.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
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