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 would 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.
The recent cuts come as part of Disney’s company-wide cost-cutting measures. As reported, Disney aims to achieve $5.5 billion in cost savings through about 7,000 layoffs this year, which represent around 3.2% of the company’s total headcount worldwide. The reductions at Pixar are thus an extension of these strategic moves.Morris noted that top leadership was not impacted by these layoffs.
Shifts in Viewing Habits Affected Pixar’s Performance
Pixar, once renowned for its uninterrupted streak of box office hits like Toy Story and Finding Nemo, has faced significant challenges during the pandemic era. Peter Docter reflected on how the existence of Disney+ and exclusive releases on the platform affected their revenue stream: There has been an overall shift in viewing habits as a result of the pandemic, but it’s also specific to Disney+. We’ve told people, ‘Hey, all of this is going to be available to you on Disney+!’
Quality vs Quantity Debate
A recurring theme in discussions about Disney’s future direction has been a return to quality over quantity. Bob Iger’s mandate emphasizes focusing on feature films rather than pushing out series content primarily for streaming. This pivot is part of a course correcting measure following Bob Chapek’s tenure.
The Road Ahead for Pixar
Despite the recent layoffs and struggles, there is hope that upcoming projects will revive Pixar’s fortunes. The studio’s next big release—Inside Out 2, set for June 2024—has already generated considerable buzz and excitement among fans.
Morris concluded his memo positively: 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.
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