Disney has implemented another round of layoffs, with the latest wave disproportionately affecting Pixar. This marks the third set of company-wide reductions this year as Disney pursues a new "one Disney" organizational strategy. While the exact number of employees impacted at Pixar remains unclear, other divisions such as National Geographic and ESPN were also subject to cuts. These layoffs follow earlier reductions in January that streamlined marketing efforts and a significant April event that saw over 1,000 employees let go, including members of Marvel's visual development team.
The cuts at Pixar occur despite the combined box office success of "Toy Story 5" and "Hoops," which generated $1.25 billion globally. "Toy Story 5" contributed the majority of this revenue, while "Hoops" earned nearly $400 million before its availability on Disney+. The new sci-fi franchise, centered on a young protagonist's efforts to protect local wildlife from development, reportedly outperformed Disney's live-action "Moana" adaptation.
Veteran artist Julia Lundman described the situation on Bluesky, stating that "Pixar has just been utterly gutted of almost all its veterans." She noted that while her partner secured their position, many friends did not, calling the situation "incredibly devastating." This latest round of layoffs comes two years after Pixar experienced its largest workforce reduction ever, coinciding with a company shift back towards prioritizing quality over quantity. The current cuts also align with Disney's exploration of short-form video content and the integration of artificial intelligence in content creation.
In a memo to staff in April, Disney CEO Josh D’Amaro stated, "Over the past several months, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect from Disney." He further explained, "Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce to meet tomorrow’s needs."