DreamWorks to fire 500, save $30 million in 2015
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I am confident that this strategic plan will deliver great films.
Jeffrey Katzenberg, CEO
"The number one priority for DreamWorks Animation's core film business is to deliver consistent creative and financial success," said DreamWorks Animation chief executive officer Jeffrey Katzenberg.
"I am confident that this strategic plan will deliver great films, better box office results, and growing profitability across our complementary businesses."
The overall reduction of DreamWorks Animation's feature production output will result in a loss of approximately 500 jobs across all locations and all divisions of the studio. DreamWorks expects to incur a pre-tax charge of approximately $290 million in connection with the restructuring and related items.
These costs are expected to be incurred primarily in the quarter ended December 31, 2014, with the remainder in 2015 and 2016. The plan will result in total cash payments of approximately $110 million incurred primarily in 2015.
The restructuring plan is expected to be substantially complete by the end of 2015 and expected to result in annualized pre-tax cost savings of approximately $30 million in 2015, growing to roughly $60 million by 2017. ■