As The Walt Disney Company transitions from quantity to quality, the studios that create the content are being affected by this change of focus. Earlier this year it was revealed that Pixar Animation Studios would be laying of 20% of its workforce due to no longer making as much content. At the time, it wasn’t known when those layoffs would happen. It turns out, when is today. The Hollywood Reporter is reporting that Pixar is beginning the layoff process today.
The layoffs are impacting roughly 14 percent of the staff at Pixar. This equates to approximately 175 of the 1,300 who work for the studio. This is less than the amount of layoffs that originally were expected. Pixar’s layoffs are happening later than most of Disney’s layoffs (which happened last year) due to production schedules.
The change of focus comes as Disney CEO Bob Iger turns the course of the company from the direction that former Disney CEO Bob Chapek had it on. Under the leadership of Chapek, the various Disney studios were pushed to release lots of content for the Disney’s streaming services. This led to studios like Pixar being stretched too thin. Iger said on an earnings call earlier this year that the focus moving forward was going to be on quality.
Along with a reduction in its workforce, Pixar will also no longer be creating series for Disney+. The exception to this is Win or Lose, which will be arriving on the streaming service later this year. Also this year, the highly anticipated Inside Out 2 will be arriving in theaters. This looks to be a welcome breath of fresh air for the studio after several turbulent years. Under Chapek’s leadership, three films were sent directly to streaming services instead of theaters. This was followed by the release of Lightyear in theaters, which did not perform as hoped. The most recent film, Elemental, was a solid step in the right direction. It earned over $500 million at the box office globally. This was the strongest release for Pixar since 2017’s Coco. It also has been a solid streamer.
Along with Inside Out 2 this year, the future looks bright for Pixar with Toy Story 5 (2026) and Elio (2025) on the horizon. Below is a look at the memo that was sent by Jim Morris, President of Pixar Animation Studios, to employees.
Hello everyone.
I have spoken to you many times over the last year about our pending move away from series production for Disney+, the return to our focus on feature films, and the reduction in our team that would accompany that. That day is here, and while it is not coming as a surprise to anyone, it is one of the hardest changes we’ve had to make, as it means we will be parting with a number of talented and dedicated colleagues and friends.
Today, leaders will begin the process of notifying employees whose positions are being impacted. Calendar invites to speak with a leader have already gone out to those individuals, and we anticipate we will have connected with everyone impacted by the end of the day.
I want to assure you that will be providing extensive support as our colleagues start to transition out of the studio. We are committed to ensuring that their departure is handled with the utmost respect and care at every stage. This is important to me, and I understand how important this is to all of us in the Pixar community. I will host a brief Studio Meeting via Zoom this afternoon at 5:00 to talk more about today’s announcement.
Despite the challenges in our industry over the past few years, you have all consistently shown up to contribute, collaborate, innovate, lead, and do great work at this studio. I give you my deepest thanks, and for those who will be leaving us, I am hopeful that our paths will cross again, both professionally and personally.
Jim
