Long-anticipated layoffs have begun at Pixar Animation Studios today. Approximately 175 employees, or about 14% of the studio’s workforce, are being let go, according to a spokesperson for parent company Walt Disney.
These cuts are part of CEO Bob Iger’s broader initiative to emphasize quality over quantity in content production.
While other Disney divisions faced layoffs last year, Pixar’s reductions were postponed due to production schedules. Initially, it was expected that 20% of the animation studio’s employees would be laid off.
Iger, who resumed his role as CEO in late 2022, is focused on reversing the company’s box office challenges, which have been exacerbated by content decisions and pandemic-related shutdowns.
Although Disney has experienced mixed box office success with various franchises, including the Marvel Cinematic Universe, its animated features have struggled to connect with audiences.
During the pandemic, as theaters closed, Disney bolstered its then-new streaming service Disney+ by releasing content directly to digital platforms.
This strategy stretched creative teams thin and shifted audience expectations, leading parents to seek out new Disney titles on streaming rather than in theaters, even after Disney resumed theatrical releases.
Additionally, many viewers felt that Disney’s content had become overly existential and too focused on social issues, distancing itself from its core child audience.
Since 2019, no Disney animated feature from Pixar or Walt Disney Animation has surpassed $480 million at the global box office.
In contrast, just before the pandemic, “Coco” earned $796 million globally, “Incredibles 2” amassed $1.24 billion, and “Toy Story 4” garnered $1.07 billion.
With Iger’s return, Pixar plans to refocus on theatrical releases and reduce the production of short-form series for Disney+.
Source-CNBC
