BUSINESS

DreamWorks reduces number of movies produced each year and cuts 500 jobs

01/22/2015 05:46 EST | Updated 03/24/2015 05:59 EDT
GLENDALE, Calif. - DreamWorks Animation says it is reducing the number of films it produces each year from three to two and cutting 500 jobs.

The company — known for animated movies such as "Shrek" and "Kung Fu Panda" — said Thursday that it is seeking to reduce costs and improve profitability.

DreamWorks says it will focus on six movies over the next three years — one original film and one sequel per year.

The job cuts represent 18 per cent of its workforce and are expected to be complete by the end of the year.

DreamWorks Animation SKG Inc. will take a $290 million pre-tax charge in connection with the restructuring.

Shares of the Glendale, California, company rose 3 per cent in extended trading following the announcement.