Yahoo Finance Pixar Hit With Layoffs as 175 Staffers Cut
Pixar was hit with layoffs on Tuesday as approximately 175 employees, or 14% of its workforce, were let go.
In a note to staff, Pixar president Jim Morris said that individuals who have been impacted by the layoffs will be notified on Tuesday. “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,” he wrote.”
More from Variety
Pixar employees have been bracing for layoffs since January, but cuts were smaller than the speculated 20% reduction that was reported at the time.
Once considered the gold standard of family films, Pixar has been struggling since the pandemic, when its corporate overlords at Disney used the pedigree of the animation brand to prop up its new streaming service. During that period, new offerings “Soul,” “Luca” and “Turning Red” were sent directly to Disney+ and family audiences became accustomed to expect those movies at home. When it reverted to prioritizing theatrical releases, moviegoers rejected a string of $200 million movies, including “Lightyear” and “Onward.” Although “Elemental” finished with $495 million globally, much stronger than its disappointing opening weekend would have suggested, it’s far less than Pixar movies earned in its glory days.
Pixar has admitted these mistakes and has since attempted to course correct them. “During COVID, we trained audiences to watch our movies on Disney+. I won’t say there was a lot of choice,” Morris told Variety last summer. “For periods of time, it was the only thing we could do. We have a little work to unring the bell and motivate families to go to the theater and not wait a few months to see it on Disney+.”
However, exhibitors believe the studio’s upcoming sequel “Inside Out 2” on June 14 will have the humor and charm to recapture the animation company’s luster. Pixar’s slate also includes “Elio” in 2025, and “Toy Story 5” in 2026.
Disney endured layoffs in 2023 — which then represented around 3.6% of total headcount of approximately 220,000 worldwide — as the media conglomerate attempted to cut costs. Pixar laid off 75 employees in the middle of last year as part of Disney’s companywide cutbacks, according to Reuters. These additional layoffs are due to the company’s efforts to scale back on direct-to-consumer series in favor of feature films.
Morris concluded his staff-wide memo saying, “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.”
Best of Variety
Sign up for Variety’s Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
