After Millions in Tax Breaks for Hollywood, DreamWorks’ Jeffery Katzenberg Kills 350 Jobs
Despite some $430 million in tax breaks for Hollywood in last year’s “fiscal cliff” deal, DreamWorks Animation CEO Jeffrey Katzenberg has announced that he is cutting 350 people by the end of the year.
After the disappointing box office for DreamWorks’ latest film, The Rise of the Guardians, Katzenberg said that the $165 million loss made him “go back and rethink everything.”
“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 told the Hollywood Reporter.
Late in December Hollywood was the recipient of some $430 million in “tax extenders” during a fiscal cliff deal that was hailed as a “saving grace for middle class taxpayers, their families and the unemployed.”
Further, from Chicago, to New York, to Louisiana, Hollywood has gotten repeated tax breaks in cities across the country, breaks used as an inducement for local movie industry spending. And this is not to mention the millions saved by the film industry’s increasing practice of moving TV and movie projects to Canadian film facilities and studios.
Katzenberg’s announcement comes only days after the Academy of Motion Picture Arts and Sciences honored Katzenberg with the Jean Hersholt Humanitarian Award for his fundraising for the Motion Picture and Television Fund.
Katzenberg has also been quite generous to Barack Obama having given $3 million in donations to a pro-Obama Super PAC, Priorities USA.
The Washington Free Beacon also notes that Katzenberg helped bundle $2 million for Obama’s 2012 re-election campaign and a total of some $6.6 million since Obama first ran in 2008. The President has called Katzenberg “an extraordinary friend.”
Warner Todd Huston
Warner Todd Huston is a Chicago-based freelance writer, has been writing opinion editorials and social criticism since early 2001 and is featured on many websites such as Andrew Breitbart's BigGovernment.com, BigJournalsim.com and all Breitbart News' other sites, RightWingNews.com, CanadaFreePress.com, and many, many others. Additionally, he has been a frequent guest on talk-radio programs across the country to discuss his opinion editorials and current events as well as appearing on TV networks such as CNN, Fox News, Fox Business Network, and various Chicago-based news programs. He has also written for several history magazines and appears in the book "Americans on Politics, Policy and Pop Culture" which can be purchased on amazon.com. He is also the owner and operator of PubliusForum.com. Feel free to contact him with any comments or questions : EMAIL Warner Todd Huston and follow him on Twitter, on Google Plus , and Facebook.