Pixar to undertake more layoffs after staff have completed production of current projects, sources report

Pixar Animation Studios, a subsidiary of Walt Disney, is planning job cuts due to a surplus of staff after completing production on some shows, according to a source speaking to Reuters. While initial reports suggested layoffs of up to 20%, a source familiar with the situation disputed this figure, stating that the exact number of job cuts has not been determined, and the layoffs are not imminent. 

The source clarified that the job cuts would not affect Pixar's theatrical output and attributed the surplus staff to the completion of streaming series at Pixar's Emeryville studio in California. Disney CEO Bob Iger, aiming to control costs, has indicated a shift towards licensing content from third parties instead of producing more in-house streaming content.

In June of 2023, Pixar made its first significant job cuts in a decade, eliminating 75 positions, including executives associated with the box office disappointment "Lightyear." The film featuring the voices of Chris Evans and Keke Palmer, cost $200 million USD to make, and earned $226 at the box office, but was considered a flop due to how little it made and other costs such as marketing and promotion. It also prompted bans in some countries due to a same-sex kiss, which may have affected its global box office takings.

Despite a slow start, Pixar's movie "Elemental" gained momentum and achieved nearly $500 million in worldwide ticket sales. Pixar, renowned for franchises like "Toy Story" and "The Incredibles," was acquired by Disney in 2006 to rejuvenate Disney Animation, and its recent adjustments reflect broader strategies within Disney to streamline its content production and distribution.