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Renowned animation studio Pixar, owned by Disney, is expected to undergo layoffs this year. While initial reports hinted at significant job cuts of up to 20%, reducing Pixar's workforce from 1,300 to less than 1,000, the studio has clarified that the number of affected employees is still being determined.
Factors such as production schedules and staffing for future projects affect the final count. According to TechCrunch, the studio has confirmed the impending reductions.
Streamlining Operations
Pixar emphasized that the layoffs are not imminent but will occur later this year as part of an effort to streamline the studio's content production, as per Reuters. This move aligns with Disney's renewed focus on optimizing efficiency within its various divisions.
Insiders reveal that the layoffs extend to employees specifically hired for Disney+, Disney's streaming platform. Disney urged Pixar to produce content for this division, which is not yet profitable. Despite Disney+ recently surpassing expectations with 7 million new subscribers in Q4, reaching 150.2 million (including Hotstar), the streaming service is still grappling with financial losses, albeit narrowing.
The job cuts at Pixar are part of Disney's broader cost-cutting strategy. The company announced plans to increase cost reductions by an additional $2 billion, aiming for a total of $7.5 billion. The decline in advertising revenue from ABC and other TV stations and ongoing losses in the Disney+ division have necessitated these measures.
Reducing Streaming Losses
Disney expressed confidence in its ability to reverse the financial situation of Disney+. CEO Bob Iger revealed that the company expects to achieve profitability in the streaming sector by Q4 2024, thanks to strategic restructuring efforts resulting in enhanced efficiency. In Q4 2022, Disney+ incurred losses of nearly $1.5 billion; in Q4 2023, the losses decreased to $387 million.
This is not the first instance of job cuts at Pixar. Earlier in 2023, the studio laid off 75 positions, including two prominent executives behind the film "Lightyear." These cuts were part of Disney's larger plan to reduce headcount by 7,000 jobs and $5.5 billion in costs.
The previous round of layoffs saw the departure of long-time animators Angus MacLane ("Toy Story 4," "Coco") and Galyn Susman, who had been with Pixar since the original "Toy Story."
Photo: Samsung Newsroom
