Pixar, the renowned animation studio known for producing critically acclaimed films such as Toy Story and Finding Nemo, is undergoing significant changes. The studio, which was bought by Disney in 2006, is reducing its workforce by approximately 14%, or around 175 employees.
The layoffs are part of a wider cost-cutting effort at Disney and come as the company shifts its focus back to quality over quantity in content production. According to various sources, Disney CEO Bob Iger's mandate is to return Pixar to its roots and not prioritize churning out content for streaming services.
Pixar will no longer be producing direct-to-streaming series but will instead focus on its feature films. This decision was made in light of the success of recent Disney films such as Soul, Luca, Turning Red, and Elemental.
The layoffs have been a long time coming for Pixar employees who have been bracing for reductions since January. However, the impacted individuals were given calendar invites to speak with a leader on Tuesday and it is anticipated that all notifications will be completed by the end of the day.
Pixar has struggled in recent years as its movies were sent directly to Disney+ and audiences became accustomed to watching at home. The studio's misfires include Toy Story spinoff Lightyear and Elemental, which finished with $495 million globally but fell short of past Pixar movies.
Despite the challenges in the industry over the past few years, Pixar employees have consistently shown up to contribute, collaborate, innovate, lead, and do great work at this studio. The company's upcoming sequel Inside Out 2 is expected to recapture its luster when it opens on June 14.
Disney endured layoffs in 2023 as part of its efforts to cut costs. Pixar laid off 75 employees in the middle of last year as part of those companywide cutbacks. The additional layoffs are due to the company's efforts to scale back on direct-to-consumer series and focus on feature films.
