Disney's once-golden animation studio Pixar Animation Studios will undergo layoffs this year, the company confirmed. TechCrunch first reported news of the impending layoffs, claiming the cuts will be "significant and as high as 20%"
While Pixar did confirm plans to reduce its staff this year, they stated those estimates were "too high." Factors like "production schedules and staffing for future greenlit films" will ultimately determine just how many current employees are let go.
Meanwhile, sources revealed that the layoffs will also include those who have been hired for Disney+ — "hires Disney pushed on Pixar to produce for its streaming division, which hasn’t yet turned a profit."
The layoffs are expected to take place later this year as the studio is still determining just how many employees will be impacted. With over 1,300 people currently working at Pixar, a reduction of 20% would see hundreds of employees laid off, dropping the headcount to less than 1,000.
Once a box office behemoth that couldn't miss, Pixar — best known for Toy Story, The Incredibles, Finding Nemo, and Cars franchises — has struggled in a post-pandemic world. After seeing a trio of films (Soul, Luca, and Turning Red) released directly to Disney+ amid the pandemic, Pixar has had a difficult time attracting audiences in theaters.
Lightyear, a Toy Story spin-off that marked Pixar's grand return to the big screen, was one of the studio's biggest box office bombs ever. The film grossed just $226 million worldwide against a $200 million production budget.
Despite the rough patch, there is a flicker of hope for the studio. Elemental, which was released last summer, got off to a horrendous start. But after posting Pixar's second-worst box office opening of all time, the film found its footing with audiences and ultimately ended up grossing $496 million worldwide, becoming a sleeper hit and renewing faith in the studio.
Looking ahead, Pixar is set to release Inside Out 2 this summer (June 14, 2024) and Elio next year (June 13, 2025). Toy Story 5 has also been confirmed. Additionally, Soul, Luca, and Turning Red, are finally getting their long-awaited theatrical release. Soul opened in theaters on January 12 and will be followed by Turning Red on February 9, and Luca on March 22. This feels more about giving those who worked on the films the honor of seeing their movies play on the big screen than Disney trying to recoup some lost money.
Disney is currently undergoing a massive restructuring, especially as it attempts to turn Disney+ profitable by Q4 2024. Part of this restructuring included reducing headcount by 7,000 jobs and $5.5 billion in costs. Earlier in 2023, Pixar laid off 75 employees, including two executives behind Lightyear.