Pixar, the renowned animation studio owned by Disney, is downsizing its workforce by approximately 14 percent, marking a strategic shift away from streaming content production.
The reduction of around 175 jobs, as reported by The New York Times, is a lesser figure than initially anticipated when Disney announced plans to streamline operations at Pixar earlier this year.
In an internal memo quoted by the Times, Pixar President Jim Morris informed employees of the studio’s decision to refocus on feature films.
Once hailed as Disney’s prized asset, Pixar has faced challenges following the disappointing performance of “Lightyear,” a 2022 spin-off from the beloved “Toy Story” franchise. Subsequent releases, including “Elemental,” also failed to meet expectations at the box office.
During this period, Pixar ventured into producing animated series for Disney’s streaming platform, Disney+. Offerings included “Cars on the Road,” based on characters from the “Cars” movies, and “Dug Days,” featuring the lovable dog from “Up.”
Upcoming Pixar film releases include “Inside Out 2” scheduled for next month and “Elio,” postponed to 2025.
Disney underwent significant cost-cutting measures last year under the leadership of CEO Bob Iger, resulting in over 8,000 job cuts, particularly within the media division, including Disney+.
Last quarter marked a significant milestone for Disney as its entertainment streaming segment turned a profit for the first time since the launch of Disney+ in 2019, overcoming previous losses.
