The long-rumored layoffs at Pixar have come to fruition. The animation studio has let go of approximately 14% of its workforce, or around 175 employees. This is a serious hit for a company with only about 1,300 employees.
Pixar employees were given the heads-up about the pending layoffs in January. At that time, they were predicting almost 20% of the staff would need to be cut. So it looks like the company was able to strategize to save some jobs.
New Focus
These firings are part of a larger initiative by Pixar’s parent company Disney, and its returning CEO, Bob Iger. His sort-lived successor Bob Chapek’s focus was having the company turn out as much streaming content as possible. This led to creative teams across the company being stretched too thin to feed the ever-growing digital beast.
Iger is taking the opposite approach and focusing on releasing less content to allow creative teams to focus on quality. And this unfortunately means cutting down on staff to keep budgets in check. Due to this initiative, there were already mass layoffs across Disney and its subsidiaries last year. But it seems Pixar was initially spared due to production schedules.
To further reduce its output Pixar, led by Pete Docter, will focus on feature films and cut out direct-to-streaming series. Except for the series “Win or Lose,” which is slated to debut later this year.
Some of this call for this change is pinned on Chapek’s choice to have the movies “Luca,” “Soul,” and “Turning Red” release directly onto Disney+. While direct-to-streaming releases became the norm during COVID-19 lockdowns, these opened when theaters were reopening or in full recovery mode. Pixar’s first post-COVID theatrical release, “Lightyear,” tanking at the box office did show chips in the armor of the once-too-big-to-fail studio.
A New Hope For Pixar
But a few setbacks don’t necessarily spell disaster. The studio’s 2023 release “Elemental,” raked in nearly $500 million globally. Making it their biggest original animated movie since 2017’s “Coco”. The studio also has a lot of hype around “Inside Out 2,” opening June 14th, with its trailer being the most watched in Pixar’s history. There is also a lot of buzz about the 2026 releases “Elio” and “Toy Story 5.”
You can read the full memo about the layoffs from company president Jim Morris below.
The Memo
“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.”
