Pixar has announced the layoff of 14 per cent of its workforce, impacting about 175 employees. This decision aligns with parent company Disney’s broader initiative to streamline operations and reduce costs.
This move follows Pixar’s job cuts in June of the previous year, when 75 positions, including two executives associated with ‘Lightyear,’ were eliminated. Additionally, in January 2024, the company made more workforce adjustments resulting from the completion of streaming series projects at Pixar’s Emeryville studio in California.
Jim Morris, president, Pixar, communicated the layoffs through a company-wide memo, acknowledging the necessity of these cuts as the studio refocuses on producing feature films for theatrical release. He praised the employees for their resilience and contributions during challenging times, expressing gratitude and hope for future professional reunions.
The layoffs at Pixar are part of Disney’s strategy to cut overall spending by about $5.5 billion, as detailed in a report by The Verge. This cost-cutting measure is part of the plan of Bob Iger, CEO, Disney, to steer the company back toward producing high-quality content primarily for theatrical release rather than streaming platforms.
Since Iger’s return as CEO in late 2022, Disney has been striving to regain its position in the box office market. Iger’s strategy emphasises a renewed commitment to theatrical releases for Pixar, moving away from the short-form series predominantly produced for Disney+.
In an effort to streamline costs, there has been a strategic shift within the company to reduce the production of in-house streaming content. Instead, the company aims to license shows and movies from third parties.
