Pixar is cutting 175 workers at its studios in Emeryville
Pixar has initiated longanticipated layoffs at its Emeryville animation studios.
President Jim Morris sent an email to staff on Tuesday, revealing that approximately 14% of the workforce — roughly 175 employees — would be let go as part of a restructuring plan by Disney.
“I have spoken to you many times over the last year about our pending move away from series production for Disney+, the return to our focus on feature films, and the reduction in our team that would accompany that,” Morris wrote in the message obtained by the Hollywood Reporter.
He added, “That day is here, and while it is not coming as a surprise to anyone, it is one of the hardest changes we’ve had to make, as it means we will be parting with a number of talented and dedicated colleagues and friends.”
Initial reports in January hinted at a potential layoff of up to 20%, affecting around 260 employees out of Pixar’s team of 1,300. However, the final count was influenced by various factors, including production schedules and staffing needs for upcoming projects.
The layoffs align with Disney boss Bob Iger’s shift toward producing less content and are part of the entertainment giant’s broader cost-cutting endeavors. The company aims for an additional $2 billion in cost reductions on top of the previously announced $7.5 billion target mentioned in its fourth-quarter earnings report.
Disney acquired Pixar in 2006, capitalizing on the success of animation hits such as “Toy Story” and “The Incredibles.” In June, the studio underwent a rare round of layoffs, affecting 75 people, including two executives linked to the box office disappointment “Lightyear” — director Angus MacLane and producer Galyn Susman. Last summer’s layoffs marked the first significant cuts for the animation company in a decade.
A month later, Pixar listed its 16,800-square-foot office space in Emeryville for sublease.
Many people affected by the new cuts at Pixar were hired to produce content for the streaming platform Disney+, which is yet to be profitable.
“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,” Morris wrote. “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.”
While Pixar’s “Elemental” was noted as one of the most popular titles on Disney+ last year, it initially struggled at the box office, delivering one of the studio’s weakest in-theater debuts in its 28-year history. It followed underperforming titles like the “Toy Story” spinoff “Lightyear” and elfin fantasy “Onward.”
Recent releases such as “Soul,” “Luca” and “Turning Red” were directly launched on Disney+, although they eventually received a theatrical release.
Pixar aims to reverse its fortunes with the upcoming theatrical releases of “Inside Out 2,” due on June 14, and “Elio” and “Toy Story 5” in 2026.