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Job layoffs are in the near future for employees at DreamWorks Animation as they take their first quarterly loss in six years.
According to Variety, DreamWorks announced that they will lay off 350 employees. The animation company has seen an $83 million loss in its fourth-quarter report.
“Many valuable members of the DreamWorks Animation family will be leaving the company within the year,” said DreamWorks Animation CEO Jeffrey Katzenberg.
One reasoning for the loss is their Rise of the Guardians flopped at the box office. The film has grossed over $300 million worldwide, but to DreamWorks it is one of their most unacceptable films in their history.
"While Rise of the Guardians did not achieve the level of box office success that we have come to expect from a DreamWorks Animation film, we have made several changes to our future slate that we believe will position us well for the next two years," Katzenberg said.
Reuters last reported the animation company was suffering a loss of $0.98 per share in the fourth-quarter.
"They have a history of making successful films, and they've had one flop ... This movie was a bust, but based on their track record, I expect things to get better," said Morningstar analyst Michael Corty.
DreamWorks was being cautious Tuesday when they took a monetary hit. They decided to close down production on their upcoming Me & My Shadow movie.
The team doesn’t feel that the film is anywhere close to where it has to be.