DreamWorks Animation has reduced its workforce by nearly 4% in a new round of layoffs affecting around 70 positions. 

“Roles affected were across corporate functions, feature, television and technology departments as part of an overall cost-reduction,” a DreamWorks spokesperson says.

The studio previously laid off 33 workers (about 2% of its workforce at the time) in May.

The broader kids industry has been implementing more cost-saving measures in recent months in the form of layoffs and streamers removing shows from their platforms. There was also the WGA strike, which lasted through the summer from May 2 to September 27. According to Deadline, this challenging landscape, along with “the downward cyclical turn in the business [and] rising production costs,” were contributing factors behind these cuts. 

DreamWorks has navigated theatrical highs and lows over the past year leading up to this latest round of layoffs. The 2022 flick Puss in Boots: The Last Wish grossed nearly US$485 million worldwide and earned the studio an Oscar nomination for Best Animated Feature. But this year’s Ruby Gillman, Teenage Kraken (pictured) underperformed, earning just around US$45 million at the global box office against a US$70-million budget.

Meanwhile, on the TV side of its business, the studio has been expanding its slate with upcoming series for streamers like BE@RBRICK (Apple TV+) and Mighty Monsterwheelies (Netflix). It’s also dipping into the kid-friendly horror genre with new toons such as CURSES! for Apple TV+ and Fright Krewe for Hulu and Peacock.

DreamWorks Animation’s next big-screen release is Trolls Band Together, which extends the popular Trolls franchise and hits theaters on November 17.