In a time of major struggle, DreamWorks Animation has reported that it will immediately shut down one of its main studios, Pacific Data Images. The impact of the closure will be big as approximately 500 staff will be dismissed. Some of PDI’s laid-off staff will be relocated to DreamWorks’ Glendale studio.

The closure of the studio and the layoffs comes in the wake of some of DreamWorks’ recent animated features under-performing at the box office, which includes Rise of the Guardians, Turbo, Mr. Peabody & Sherman, and Penguins of Madagascar, all four of which resulted in staff cuts. DreamWorks had admitted losing 38.3% of share value during the past year.

In another attempt to reduce costs, DreamWorks will reduce their annual feature releases from three to two, which includes one original, and one sequel. The result has put several changes to their release schedule. B.O.O: Bureau of Otherworldly Operations, which was originally scheduled to release this year has been put back into development, leaving Home as their only feature of 2015. Some films such as 2017’s Captain Underpants will be outsourced in order to produce “at a significantly lower cost” while How to Train Your Dragon 3 has been pushed back yet another year for a June 2018 release.

Penguins of Madagascar was the final DreamWorks film made in the PDI studio.

Prior to DreamWorks, PDI was known for working on network TV projects, the visual effects for Terminator 2, and the Homer3 segment in The Simpsons’ “Treehouse of Horror VI”. The studio would then team up the newly-formed DreamWorks SKG to make the 1998 computer animated film Antz, followed by films such as the Shrek and Madagascar movies, Megamind, and Mr. Peabody & Sherman. Penguins of Madagascar was the studio’s final feature before being disbanded.

News sources: Cartoon Brew, Deadline, IMDb.