DreamWorks downsizes

DreamWorks Animation has said it is reducing the number of films it produces each year from three to two and cutting 500 jobs.

The company – known for animated films such as Shrek and Kung Fu Panda – said it is seeking to reduce costs and improve profitability.

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

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

DreamWorks Animation will take a 290 million dollar (£193 million) pre-tax charge in connection with the restructuring.

Shares of the company, based in Glendale, California, rose 3% in extended trading following the announcement.