The years following the COVID pandemic have been gravely difficult on business sectors and the working class since the days were plagued by layoffs and business shutdowns. Even 2024 seems to suffer the same tragedy as Disney-owned animation studio Pixar, announces its decision to undergo layoffs.
Ever since Disney’s March 2023 announcement of laying off 7,000 employees and cutting $5.5B in costs hit headlines, even Pixar seemed to follow the same steps. Gravely impacted by the production company’s decision, Pixar Animation Studios previously laid off 75 employees in May 2023, marking its first layoff in 10 years. And now, again in 2024, the company shared its plans to lay off nearly 20 percent of its employees.
Pixar Plans to Lay Off Amid Disney’s Plans for Profit
The year 2023 and Disney’s ownership have been difficult on the Pixar Animation Studios since the production company has been shooting for profit and the Animation Studio felt the force to follow in. Ever since Disney’s ownership, the company pushed Pixar to produce for the Disney+ streaming division. But unfortunately, it hasn’t yet turned a profit.
Thus, Disney began with its cost-cutting measures, to cut down on its streaming losses, following a decrease in ad revenue. As of Q4 2022, Disney+ lost nearly $1.5B; in Q4 2023, it lost “just” $387M. In this way, Disney is expecting its streaming service to get out of the red by Q4 2024. Therefore, the company’s plans are significantly impacting Pixar Animation Studios.
Disney’s strategy of making sequels and franchises of Pixar’s most viewed content is also facing a major loss. Entertainment industry strategist Brandon Katz explained the reason via TechCrunch – “audiences are facing sequel and franchise fatigue”. Therefore, failing to reach the profit levels that Disney aimed for, Pixar is now focusing on making less content and laying off a handful of its employees.
Pixar Studios Impacted by Disney’s 2023 Layoffs
According to reports from TechCrunch, Pixar Animation Studios is planning on laying off as significant and as high as 20% of its employees. This means Pixar’s team will witness a reduction from 1,300 employees to less than 1,000, over the coming months. Realizing that the numbers are too high, the studio noted,
“The number of impacted employees is still being determined due to factors like production schedules and staffing for future greenlit films… layoffs are not imminent, but will take place later this year.”
According to insiders, Pixar’s layoff headcount also contains employees for Disney+, who were hired to push the animation studio to produce for its streaming division. Further, the animation studio’s previous layoffs were also brought into account, as the animation studio laid off 75 employees in May 2023, after significantly eliminating jobs.
This was apparently a result of Disney’s March 2023 announcement that it was laying off 7,000 employees and cutting $5.5B in costs. Thus, following in Disney’s footsteps, Pixar previously dropped a handful of employees and is again planning to do the same, only this time the headcounts might be significantly higher.
