DreamWorks exec resigns as studio scales back production

One of DreamWorks’ top executives has resigned in the wake of the studio’s decision to scale back production after it secured a small amount of financing from backer Reliance Entertainment.

DreamWorks’ head of physical production, Steve Molen, resigned late Thursday, just two days after Steven Spielberg’s company reportedly agreed to a new but smaller deal with backer Reliance Entertainment. Molen’s departure is said to be related to the studio’s continuing money woes, according to Deadline Hollywood.

Reliance invested $325 million in DreamWorks in 2009 and recently agreed to provide $200 million after long negotiations, during which time DreamWorks was reportedly unable to move forward with production starts or buy much new material.

After it secured the new infusion of capital, though, DreamWorks decided to scale back production, making just three or four films a year, focusing on either pricey tentpoles or lower-budget fare. On larger movies, DreamWorks will seek to partner with outside companies for financing help, according to The Hollywood Reporter.

The Steven Spielberg-headed studio is only releasing two small movies this year: “People Like Us,” set for June 29, and “Lincoln” in December.

In light of this reduced development and production, more resignations and layoffs are expected at the company, Deadline claims.