DreamWorks Animation, the subsidiary of Universal Pictures has cut approximately 70 positions.
It joins the ranks of entertainment companies grappling with rising production costs and recent industry work stoppages.
The layoffs affected around 4 percent of DreamWorks Animation’s employees.
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It covers various corporate, feature, television, and technology departments, forming part of the company’s broader cost-cutting measures.
Notable productions from the Glendale-based studio include “Puss in Boots: The Last Wish,” “Abominable,” and the upcoming “Trolls Band Together.”
These job cuts coincide with ongoing labor disputes in the entertainment industry.
Twin Hollywood strikes by writers and actors have disrupted numerous film and TV productions.
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The recent resolution of the Writers Guild of America strike ended after 148 days of industrial action.
However, the strike by film and TV actors, led by SAG-AFTRA, continues with the negotiations still ongoing.
Though the strike concludes, industry experts expect a protracted recovery period to return production levels to pre-strike norms.
The extended shutdowns have also left many crew members without work opportunities.
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Apart from the labor disputes, the animation sector has faced disruptions caused by the streaming industry’s evolution.
Companies like Netflix initially invested heavily in animation to attract younger viewers.
However, a slowdown in subscriber growth prompted cutbacks in part-time animation-related roles and series cancellations.
HBO Max also faced the cancellation of several shows in this shifting landscape.
