The Walt Disney Company just finished celebrating its 100th anniversary, but a lot of Cast Members weren’t there for the party. The company has been dealing with one significant layoff after another, and while we thought the bloodbath was over, it’s now been reported that layoffs are planned for Pixar in 2024. And they could be huge, as some sources are claiming that as much as 20% of Pixar’s workforce could be gone when it’s all done.
TechCrunch originally reported on the layoffs, and Pixar has confirmed to them that yes, the layoffs are happening, but the animation studio disputes the 20% number, saying that it is too high and that the number of layoffs are still being determined. The layoffs also aren’t happening anytime soon but will take place later in the year.
Needless to say, one-fifth of Pixar’s workforce being cut would be incredible. Pixar has about 1,300 people at its studio in Emeryville, CA, so a cut that large would drop the number to around 1,000. Having said that, Pixar did see a significant increase in its ranks as the studio geared up to produce more content than it had previously, with the launch of Disney+. Some people hired as part of the Disney+ increase are expected to be among those let go with the layoffs.
One has to assume that a lack of box office income for the studio is a big part of the reason the layoffs are coming. Pixar’s Onward was released in theaters just before the global pandemic shut theaters down, hampering its revenue. The next three Pixar movies, Soul, Luca, and Turning Red were released straight to Disney+, and without an additional Premiere Access price tag that some live-action films received during the same time. The movies released in theaters since have struggled at the box office. Toy Story spinoff Lightyear flopped despite its franchise connections. The original movie Elemental eventually found success overseas, but struggled domestically.
The Pixar layoffs are the latest in what has been an ongoing downsizing for Disney. During the global pandemic, the Disney Parks were hit with significant layoffs as the parks were either closed entirely or running at a fraction of capacity. Last year Bob Iger implemented a massive company-wide layoff that was planned to reduce headcount by 7,000 people. Last November Iger revealed that the actual number of layoffs was over 8,000.
As somebody who has visited Pixar Animation Studio more than once, and met dozens of wonderful people, this is upsetting news. Pixar staff will likely now be spending the next few months what’s going to happen to them, and in the end, some of them will be out of a job. Hopefully, the final decision will see some layoffs that’s a lot lower than what is being suggested. The three movies that were released straight to Disney+ are seeing theatrical release in 2024, with Soul opening this weekend. Perhaps, if those three movies do well it could help mitigate the damage. Inside Out 2‘s release date is set for this June, success there may also help the studio solve any financial issues in a way other than layoffs.
