DreamWorks Animation today exceeded projections that they would lay off 500 workers and shut down the PDI Dreamworks Studio in Redwood City, California.
The layoffs will begin immediately, although some members of the PDI staff will be offered an opportunity to move to the DreamWorks campus in Glendale.
DreamWorks president Jeffrey Katzenberg blamed the decision on being too ambitious and attempting to grow too fast.
"Much of my time has been focused on expanding the company," Katzenberg admitted to investors today (as quoted by Cartoon Brew). "It's now time for me to turn my attention back to the core businesses and support Mireille [Soria] and Bonnie [Arnold, the new DreamWorks feature animation co-presidents]. Much more of my time will be in support to them and less on the road. I remain 100% committed to building DreamWorks Animation. My time and my focus needs to be on making blockbuster hit films. We have the people to do it."
The production studio has a number of high-profile animated projects coming up over the next few years, including new installments in the Kung-Fu Panda and How to Train your Dragon franchises. B.O.O.: Bureau of Otherworldly Operations has been taken off the schedule and shifted back into development, as has Mumbai Musical.