DreamWorks Animation is laying off some 500 people off its workforce following sizable box-office losses that affected the company's finances.

The Glendale-based company, which has over 2,400 employees, also agreed to take a US$290-million layoff-related charge. While workers are scattered around the world, most of the company's workforce, though, is concentrated in Glendale and Redwood City, Calif.

Like Us on Facebook

It is believed that the company will successful restructure its finances by the end of 2015. It is hoped that the company could eventually annualize pretax cost savings of about US$30 million in 2015, which is expected to grow by US$60 million by 2017.

This is so far Dreamwork's largest layoff.

Likewise, DreamWorks will also reform its core feature animation business, which would see the company cut the number of animated movies it rolls out every year from three to two to "ensure the consistent and profitable deliver of high-quality films."

"The number one priority for DreamWorks Animation's core film business is to deliver consistent creative and financial success," DreamWorks Animation Chief Executive Jeffrey Katzenberg announced.

Katzenberg is confident that the company's strategy will enable the company to deliver great films and boost its box office standing and profitability in general.

The studio took a US$57 million write-down last year for its animated feature "Mr. Peabody & Sherman" and a US$13.5 million charge on its summer movie "Turbo." Those followed an US$87 million write-down for the 2012 "Rise of the Guardians" holiday movie. 

Tagsdreamworks, DreamWorks Animations