Amid industry challenges stemming from unpredictable box office performances, escalating production expenses, and disruptions caused by guild strikes, DreamWorks Animation is undergoing a workforce reduction. The NBC-Universal-owned studio is aiming to trim production costs by 20%, prompting the layoff of approximately 70 employees, constituting 4% of its staff.
In response to the downsizing, DreamWorks Animation is implementing a “mixed-production” model for feature films starting with releases slated for 2025. This strategy involves collaboration with Sony Pictures Imageworks in Vancouver for an unannounced project, a sequel, and the adaptation of Dav Pilkey’s Dog Man. This shift is part of the studio’s effort to optimize cost efficiencies and take advantage of tax incentives for producing in British Columbia.
Under this new model, the in-house team at DreamWorks Animation will handle the creative aspects and one hour of production, sharing asset builds equally with Imageworks. Sony Pictures Imageworks, known for its work on projects like Spider-Verse and Hotel Transylvania, will contribute 20 minutes of production, including entire sequences.
Notably, DreamWorks Animation’s 2024 releases, Kung Fu Panda 4 and The Wild Robot adaptation, will remain entirely in-house productions. Additionally, the upcoming Netflix project Orion and the Dark, based on Charlie Kaufman’s script, is being produced by partner studio Mikros Animation in Paris and Bangalore.
These strategic adjustments reflect the evolving landscape of the animation industry and DreamWorks Animation’s proactive measures to address financial challenges while maintaining a robust creative output.
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