Pixar Cuts 175 Jobs, 14% of Staff, in Disney Cost-Cutting Effort

Pixar Animation Studios, known for its groundbreaking animated films, is undergoing a significant restructuring that will result in the layoff of 175 employees, constituting 14% of its workforce. This move, reported as the studio’s largest restructuring to date, comes as part of Disney’s broader cost-cutting efforts.

The decision to downsize was communicated to employees by Pixar president Jim Morris, who announced that notifications would be sent out on Tuesday. The actual number of layoffs is lower than initially anticipated, with early reports suggesting a 20% reduction in staff.

Disney’s cost-cutting measures, aimed at reducing annual expenses by billions, have already led to more than 8,000 job cuts across the company under the leadership of CEO Bob Iger. These efforts include a shift in strategy for Disney+, focusing on producing fewer original shows and movies to maintain higher quality standards.

The restructuring at Pixar follows the disappointing performance of its latest theatrical release, “Elemental,” which had one of the weakest opening weekends in the studio’s history. Reports of potential layoffs have been circulating since January, with the last significant round of job cuts occurring in June of the previous year, affecting 75 positions.

Despite Disney’s recent strong earnings report, the company’s stock experienced a sharp decline, dropping 10% in its worst single-day performance since November 2022. The stock has continued to struggle, trading around $103 per share as of Tuesday, reflecting ongoing concerns in the market.