Pixar Animation Studios has started laying off 14 percent of its workforce, or about 175 employees.
This move aligns with CEO Bob Iger’s directive to emphasize content quality over quantity.
Although other Disney divisions experienced layoffs last year, Pixar’s cuts were postponed due to production schedules.
Initial reports suggested up to 20 percent of the studio’s employees might be affected.
Iger has been striving to counteract Disney’s box office challenges since resuming his role as CEO in late 2022.
Content choices and the pandemic have exacerbated the company’s challenges.
Despite the success of franchises like the Marvel Cinematic Universe, Disney has struggled to capture audience interest with its animated features.
During the pandemic, Disney prioritized its streaming service, Disney+, often releasing theatrical movies directly to digital platforms.
This strategy led parents to expect new Disney titles on streaming services rather than in theaters, even after cinemas reopened.
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Ssome viewers felt Disney’s content had become overly existential and preoccupied with social issues beyond children’s understanding.
As a result, no Disney animated feature from Pixar or Walt Disney Animation has surpassed $480 million in global box office revenue since 2019.
In contrast, just before the pandemic, films like “Coco” ($796 million), “Incredibles 2” ($1.24 billion), and “Toy Story 4” ($1.07 billion) performed exceptionally well.
With Iger’s return, Pixar will focus on theatrical releases and away from short-form series for Disney+.
This strategic adjustment aims to rejuvenate the studio’s box office performance and reconnect with audiences through high-quality animated films.
