The studio is considering letting go of up to 400 employees according to reports.

DreamWorks Animation earned an Oscar nomination last week for How To Train Your Dragon 2, however in recent times it has taken hits on under-performers such as Mr Peabody & Sherman and Turbo.

The studio was linked late last year to potential takeovers by Japan’s Softbank and Hasbro, although neither amounted to anything.

Earlier this month the studio replaced chief creative officer Bill Damaschke with co-presidents Bonnie Arnold and Mireille Soria.

A spokesperson for DreamWorks Animation declined to comment.