Pixar Lays Off Staff as Studio Shifts Focus Back to Theaters

Pixar, the renowned animation studio under Disney’s umbrella, is undergoing a reduction in workforce, with approximately 14 percent of its staff facing layoffs, as the studio shifts its focus away from streaming content production.

The downsizing, affecting roughly 175 employees, was announced in an internal memo by Pixar President Jim Morris, cited by The New York Times. Morris emphasized a redirection towards the studio’s core focus on feature films.

Once hailed as Disney’s prized asset, Pixar has encountered challenges following the underwhelming performance of “Lightyear” in 2022, a spin-off from the beloved “Toy Story” franchise, along with disappointing box office results for “Elemental”.

While grappling with these setbacks, Pixar ventured into producing animated series for Disney+, such as “Cars on the Road” and “Dug Days”, expanding its content offerings beyond traditional film releases.

Despite the restructuring, Pixar remains committed to its upcoming film slate, including the imminent release of “Inside Out 2” next month and the delayed “Elio”, now slated for 2025.

Disney’s streamlining efforts, initiated under the leadership of CEO Bob Iger, have included significant cost-cutting measures, resulting in over 8,000 job cuts, particularly within the media division encompassing Disney+.

The recent financial quarter marked a milestone for Disney, as its entertainment streaming segment turned a profit for the first time since the launch of Disney+ in 2019, signaling a positive shift after initial losses.