Big news for fans of Pixar and Disney aficionados: Disney has announced another round of lay-offs at Pixar, aimed at trimming down annual expenses by a whopping $7.5 billion. Disney CEO Bob Iger is leading the charge with significant changes across various Disney enterprises, including this 14% reduction in Pixar’s workforce. A total of 175 employees from the renowned Emeryville, California-based studio will be receiving layoff notifications.
Pixar, heralded for its groundbreaking hits like “Toy Story” and “Finding Nemo,” is restructuring its focus to emphasize feature films and scale back on TV series for the Disney+ streaming service. Pixar President Jim Morris communicated these strategic changes in a memo to employees, underscoring the studio’s renewed commitment to cinematic storytelling, moving away from the episodic content that’s become prevalent with streaming platforms.
This move aligns with Bob Iger’s broader vision of cost-cutting and increasing Disney’s productivity. Disney+ will also see reduced marketing expenditures, part of Iger’s blueprint for a leaner, more efficient Disney future. Alongside cutting jobs, the company is reconsidering the quantity of their movie releases to ensure they focus on quality over quantity.
These cuts are not entirely unexpected. Earlier in January, reports had already surfaced about Pixar’s workforce reductions following the studio’s previous elimination of 75 positions in June 2023. The ongoing struggle to bounce back post-COVID-19 has hit many studios hard, including Pixar. Reduced box-office receipts and changing audience habits have posed significant challenges, with recent offerings not hitting the high marks expected. Pixar’s latest theatrical release, “Elemental,” faced one of the studio’s lowest US openings, although it did claw back to a respectable $496.4 million in global sales.
What do you think about the recent layoffs at Pixar? Will this new focus on feature films return Pixar to its former glory, or could it signal a challenging road ahead? Join the discussion in the comments and don’t forget to share this story with fellow Disney and Pixar fans! Let’s hear your thoughts and keep the conversation lively!
For more information, you can read the original story by Thomas Buckley and Bloomberg on Fortune.
