Dream Works is no longer a Dream for Workers. Movie Company lays off 2,200 employees.

After a series of back to back successes the legendary movie studio hit a snag this year. A big snag that goes by the name of “Rise of the Guardian”. The film didn’t do as good as expected for the production company and another movie that was expected to launch “Me and My Shadow” has gone back into development…indefinitely. This has lead to some financial woes for the company, which reported losing $83 million this past quarter alone.

Dream Works CEO said that making the cuts was tough,

 “It’s been very hard. We had 17 hits in a row and this is the first one that didn’t work for us, So it makes you go back and rethink everything, not just the fact that it didn’t work – certainly we spent a lot of time reflecting on that – but more importantly, saying, ‘let’s look at everything and say, what could we be doing better, smarter, more effectively to really position the company in the best possible way gong forward? And that’s what we’ve done, and that’s what restructuring is all about.”

Katzenberg said that the cuts will not affect the company’s ability to handle its current workload.  He also took the time to set the record straight on a few things.  He confirmed that contrary to rumors that their animation division is not up for sale.  He also explained that getting A-list celebrities for voice overss will also not stop as they are paid on a contingent basis.  He explained,

“That’s always been the fantastic way we have compensated the talent in our deals, which is, if we succeed they succeed, so they work mostly on contingent compensation.”

Katzenberg who’s personal net worth is estimated at $860 Million, says the company is now “right sized” for the future.  It’s stock price I down 13% over the last year.