The Walt Disney Company has launched another major round of layoffs, eliminating several hundred positions across its entertainment empire despite enjoying one of the biggest box office successes of the year with Toy Story 5.
The latest cuts affect multiple business units, including Pixar Animation Studios, ESPN, Disney Entertainment Television, National Geographic, and various corporate functions. According to multiple reports, Pixar has absorbed the largest share of the studio-side layoffs, with production and operations teams bearing the brunt of reductions.
The move marks yet another restructuring effort for Disney as the company continues to trim costs and reshape its entertainment business under CEO Josh D’Amaro.
Pixar Takes the Biggest Hit
While Disney has not disclosed an exact company-wide figure, reports indicate that several hundred employees were informed Tuesday morning that their positions had been eliminated. Pixar appears to have suffered the deepest cuts within Walt Disney Studios, with approximately 150 jobs reportedly affected.
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According to Disney, the layoffs are part of an ongoing effort to “manage resources and reinvest across the company as our industry continues to evolve.”
The reductions at Pixar are reportedly concentrated in production and operations rather than the creative leadership behind the studio’s upcoming slate.
Success Isn’t Preventing Cuts
The timing of the layoffs is particularly striking.
Pixar is currently enjoying enormous commercial success with Toy Story 5, which is approaching the $1 billion worldwide milestone and is expected to become the highest-grossing film in the franchise. Of course Disney also lost big at the box office this summer with both Moana and The Mandalorian and Grogu.
Disney’s broader strategy has shifted considerably over the past several years.
A piece of the Mandalorian and Grogu movie poster – Disney
Following the streaming boom, Disney dramatically increased production across its studios before later reversing course as streaming profitability became a greater priority. Executives have since emphasized producing fewer projects while placing greater emphasis on theatrical releases that can generate revenue across streaming, consumer products, and theme parks.
That strategic pivot appears to have reduced the amount of work flowing through Pixar’s production pipeline, leading to today’s staffing reductions.
Original Films Continue to Be a Challenge
While Pixar continues to dominate with established franchises, launching new intellectual property has become increasingly difficult.
Earlier this year, Pixar released the original animated film Hoppers. Access media critics largely praised the film, but that acclaim did little to translate into ticket sales. The movie ultimately flopped at the box office.
King George and Mabel in the Hoppers trailer – Pixar, YouTube
Disney executives have also previously acknowledged that sending films such as Soul, Luca, and Turning Red directly to Disney+ during the pandemic changed consumer expectations and trained many families to wait for Pixar movies to arrive on streaming instead of visiting theaters.
That has left Pixar in an unusual position where sequels continue to perform exceptionally well while original theatrical releases face a much steeper climb.
Another Round of Disney Cost Cutting
Tuesday’s layoffs are far from an isolated event.
In April, Disney eliminated roughly 1,000 positions across marketing, technology, studios, ESPN, television, and corporate divisions as part of a broader restructuring effort. At the time, Josh D’Amaro told employees the company needed to become “more agile” while adapting to rapid changes across the entertainment industry.
Josh D’Amaro by the Tree of Life – Disney
This latest round expands those workforce reductions into additional parts of the company.
Beyond Pixar, National Geographic reportedly sustained significant cuts, while ESPN also announced layoffs tied in part to the integration of NFL Network operations following Disney’s acquisition.
Disney Continues Balancing Cost Cuts and Big Bets
The layoffs highlight the balancing act Disney continues to face.
The company remains willing to invest heavily in proven theatrical franchises like Toy Story, Marvel, Avatar, and Star Wars (with varying results…), while simultaneously reducing operating costs throughout the organization.
Woody and Buzz Lightyear in the Toy Story 5 Teaser Trailer – YouTube, Pixar
For employees, however, the success of a billion-dollar film has provided little insulation from Disney’s broader restructuring efforts.
Even as Toy Story 5 powers toward another historic box office milestone, hundreds of Disney employees—including many at the studio responsible for creating that success—are now out of work as the company continues reshaping its entertainment business for what executives believe is a leaner future.
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