Disney has undertaken a significant round of layoffs, affecting hundreds of employees across various divisions including National Geographic, ESPN, and most notably, the animation giant Pixar. According to reports, Pixar lost between 100 and 150 employees, representing a substantial portion of its staff. The cuts primarily targeted the studio's production and operations teams, though it remains unclear if any senior executives were among those let go.
This latest wave of layoffs marks the most significant at Pixar since May 2024, when approximately 175 employees, or 14% of the workforce, were dismissed. Sources suggest that the underperformance of the March release Hopper contributed to the recent staff reductions. While Hopper received positive reviews, earning a 94% on Rotten Tomatoes, its box office performance was reportedly modest, grossing around $390 million. In contrast, Toy Story 5 has achieved greater success, nearing $1 billion at the box office.
Pixar's box office performance has been inconsistent since the COVID-19 pandemic. The studio has seen both major successes, such as Inside Out 2 with its $1.7 billion gross, and struggles, like Elio's $154 million earnings. Several Pixar films, including Luca and Turning Red, were initially released directly to Disney Plus, a strategy that some executives believe may have inadvertently trained audiences to expect home viewing for the studio's productions. This shift in viewing habits may explain why established franchises like Inside Out and Toy Story continue to perform well with sequels, while original films like Elio have faced greater challenges in attracting audiences.
Looking ahead, Pixar has original film Gatto scheduled for release next March, featuring Mark Ruffalo as a black cat. The studio is also developing The Incredibles 3, with a release date set for June 2028.