Credit: Disney Pixar (all three images)Pixar Animation Studios, a subsidiary of Walt Disney, is set to reduce its workforce as it wraps up production on its remaining projects, leading to an excess of staff. This information comes from a source familiar with the situation, as reported by Reuters. Inside the Magic initially covered this report, which confirms that the layoffs will come later this year.
TechCrunch previously speculated that Pixar could experience layoffs of up to 20% this year, potentially reducing the studio’s 1,300-person team to fewer than 1,000 in the months ahead. However, the source disputed these numbers, emphasizing that Pixar had yet to determine the exact number of employees affected by the layoffs. Furthermore, it was clarified that the layoffs were not imminent and would not impact Pixar’s theatrical output.
Up until Elemental (2023) this past year, Pixar had gone several years without having a film even break even at the box office. Several of its films– including Soul (2020), Luca (2021), and Turning Red (2022)– were released straight to Disney+. When the studio finally had an opportunity to release a film in theaters, things went south very quickly for Lightyear (2022), which lost the company millions of dollars.
Is Disney Pixar’s Toy Story 5 in trouble?
Many fans have wondered if this could somehow cause production delays for Toy Story 5, or if it could lead to a smaller budget for the project. Disney has not confirmed this to be the case, but it wouldn’t be surprising if the film takes longer to develop with a smaller staff.
However, that’s all speculation.
The project may inevitably face delays as The Walt Disney Company navigates projects that were put on hold during the SAG-AFTRA and WGA strikes last year. At this time, however, Disney has not announced a release date for Toy Story 5, and it still looks as though the film will be released, even with a smaller staff in place at Pixar.
This past summer, Elemental finally put an end to that streak of missteps for the studio, bringing in $496.3 million at the box office, but Pixar has still had its detractors. The company will release Inside Out 2 this summer, and, as we mentioned previously, Toy Story 5 is in the works. The studio is also set to release some new Disney+ content this year.
Disney Pixar, officially known as Pixar Animation Studios, is renowned and celebrated for its groundbreaking computer-animated films. Founded in 1986 by Edwin Catmull and Alvy Ray Smith, Pixar initially operated independently, gaining acclaim for pioneering work in computer-generated animation.
Over the years, Disney Pixar has produced a portfolio of beloved films, including Toy Story (1995), Finding Nemo (2003), The Incredibles (2004), Monsters Inc. (2001), and Up (2009), to name a few. Though the two had worked together with distribution for a while, it was in 2006 when Pixar was acquired by The Walt Disney Company, marking a significant milestone for both companies. This acquisition allowed Disney to expand its animated film repertoire with Pixar’s creative talents, cementing Pixar’s status as a subsidiary of Disney.
Under Disney’s ownership, Pixar continued to create critically acclaimed and commercially successful animated masterpieces, maintaining its reputation for innovation and storytelling excellence. However, that doesn’t mean that the studio hasn’t faced its own set of challenges, particularly in the last few years.
As it navigates the current workforce changes, Pixar remains a prominent player in the animation industry, but it will be interesting to see what the studio is able to accomplish, particularly as it recovers from several years of a downward trend.
At the time of this writing, representatives from Pixar have not commented on these reports.
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