DreamWorks Animation is restructuring its feature animation business, reducing its annual output from three films to two in an effort to drive profitability.

The overall reduction of DreamWorks Animation's feature film output will result in a loss of approximately 500 jobs across all locations and all divisions of the studio.

No details have been released about how the cuts will affect the studio's consumer products team, but the largest number of cuts are expected to come from DreamWorks film division.

The restructuring is expected to be substantially complete by the end of 2015 and to result in annualized pre-tax cost savings of approximately $30 million in 2015, growing to roughly $60 million by 2017.

Under the leadership of newly appointed co-presidents of feature animation, Bonnie Arnold and Mireille Soria, animation production will now focus on six specific movies for the next three years, one original film and one sequel each year including:

Captain Underpants, which will be produced outside of the studio's pipeline at a significantly lower cost, is scheduled for release in 2017. 

"The number one priority for DreamWorks Animation's core film business is to deliver consistent creative and financial success," says Jeffrey Katzenberg, chief executive officer, DreamWorks Animation. "I am confident that this strategic plan will deliver great films, better box office results and growing profitability across our complementary businesses."