Two weeks later, PDI/DreamWorks completely shut down as part of its parent company's larger restructuring efforts due to the box office underperformance of Penguins of Madagascar (2014), cutting 500 jobs.

In 2026, it is important to clarify that DreamWorks Animation as a whole is NOT shutting down; however, the studio has undergone significant restructuring and localized closures. The confusion often stems from the 2024–2025 decision to shift away from "in-house only" production. Following several box-office disappointments and rising labor costs, DreamWorks closed its PDI (Pacific Data Images) studio in Northern California and transitioned to a "hybrid" model where a larger portion of the animation work is outsourced to third-party vendors. This move was designed to reduce the overhead of maintaining massive permanent staff and to allow the studio to focus on its core creative leadership in Glendale. While 500+ positions were eliminated during this "right-sizing," the studio remains a powerhouse under the NBCUniversal umbrella, with major releases like Shrek 5 scheduled for July 2026. The "shutting down" narrative is a common misconception of corporate downsizing for efficiency.