DreamWorks Animation cut 70 jobs in latest industry reduction
DreamWorks Animation cut about 70 positions, as many entertainment companies have adjusted their staffing levels amid rising production costs and this summer’s work stoppages.
“Roles affected were across corporate functions, feature, television and technology departments as part of an overall cost-reduction,” DreamWorks Animation said in a statement released on Sunday.
The Glendale-based company produces movies including “Puss in Boots: The Last Wish,” “Abominable” and upcoming “Trolls Band Together.” News outlet Deadline was the first to report on the layoffs, which affected roughly 4% of DreamWorks Animation’s workforce.
SAG-AFTRA is on strike, but WGA has a deal with Hollywood studios. Learn how actors can get help and which movies and TV shows have been delayed.
The cuts last week follow other companies that have been reducing their expenses amid this summer’s dual Hollywood strikes by film and TV writers and actors that have delayed or suspended many productions. Local businesses including talent agencies, production companies and prop houses have felt the financial squeeze.
Two weeks ago, the Writers Guild of America ended their 148-day strike against major studios represented by the Alliance of Motion Picture and Television Producers. when both sides reached a tentative agreement. Writers have until Monday at 1 p.m. to vote on it.
The Writers Guild of America and major studios reached a tentative agreement on Sunday night. But significant challenges remain before the entertainment industry can fully return to the business of making and promoting movies and TV shows.
Film and TV actors led by SAG-AFTRA remain on strike and are continuing negotiations on Monday with the AMPTP.
Even once that strike were to end, industry observers said it would take some time to get productions back up and running to the levels before the strikes. Many crew members have also been out of work due to the production shut downs.
Unrelated to the strikes, animation has been an area that has been significantly affected by the boom in streaming and its later course correction. Companies like Netflix heavily invested in animation as a way to attract younger audiences, but after facing a slow down in subscriber growth, cut part-time animation related jobs and canceled series. HBO Max also canceled shows.
After an explosion fueled by streaming, the rollback has hit animation hard. Creators from Netflix, (HBO) Max and more say it’s a Hollywood tradition.
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