A new report claims The Walt Disney Company will lay off up to 20% of its staff from Pixar after numerous box office failures that includes Elemental and Lightyear.
FUELING THE FIRE – Sparks fly in Disney and Pixar’s “Elemental” when Ember, a tough, quick-witted and fiery young woman, gets to know a fun, sappy, go-with-the-flow guy named Wade. Featuring the voices of Mamoudou Athie and Leah Lewis as Wade and Ember, respectively, “Elemental” releases on June 16, 2023. © 2023 Disney/Pixar. All Rights Reserved.
This new report comes from Tech Crunch’s Sarah Perez who claims, “Sources at the company said the layoffs would be significant and as high as 20% — or reductions that would see Pixar’s team of 1,300 dropped to less than 1,000 over the coming months.”
However, Perez shared that “Pixar says those numbers are too high. Rather, the studio said the number of impacted employees is still being determined due to factors like production schedules and staffing for future greenlit films.”
EVIL EMPEROR – Disney and Pixar’s “Lightyear” is a sci-fi action adventure and the definitive origin story of Buzz Lightyear (voice of Chris Evans), the hero who inspired the toy. The story, which follows the legendary Space Ranger on an intergalactic adventure, features none other than Zurg—a seemingly invincible adversary of Buzz who would go on to inspire his own toy. Featuring the voices of Uzo Aduba, James Brolin, Mary McDonald-Lewis, Keke Palmer, Efren Ramirez, Peter Sohn, Dale Soules, Taika Waititi and Isiah Whitlock Jr., “Lightyear” releases June 17, 2022. © 2022 Disney/Pixar. All Rights Reserved.
The report also details that many of the employees will be laid off within the next year will primarily be employees they brought on to help the company expand its Disney+ streaming service that has yet to turn a profit.
Ironically, the same day this report dropped, Pixar Chief Creative Officer Pete Docter was promoting three Pixar films, Soul, Luca, and Turning Red that went straight to Disney+ instead of to theaters. Pixar and The Walt Disney Company are releasing them to theaters throughout the course of this year.
He said the three films “were made to be seen on the big screen. Every frame has been pored over by the artists and technicians here, and it’s a different experience.”
SPELLBOUND – In Disney and Pixar’s “Onward,” Mom Laurel shares a gift with sons Ian and Barley from their late father that gives them an opportunity to spend one magical day with him. Featuring the voices of Julia Louis-Dreyfus, Tom Holland and Chris Pratt, “Onward” opens in U.S. theaters on March 6, 2020. © 2020 Disney/Pixar. All Rights Reserved.
Docter previously blamed Walt Disney executives for moving Pixar films to Disney+ instead of theaters while discussing the box office failure of Elemental with The New York Times.
The New York Times’ Brooks Barnes described a Zoom interview he conducted with Docter writing, “For a start, [Docter] said, Disney had undercut Pixar as a big-screen force by using its films to build the Disney+ streaming service.”
Docter specifically pointed to Soul, Turning Red, and Luca being released to Disney+ instead of theaters. Docter specifically stated, “There has been an overall shift in viewing habits as a result of the pandemic, but it’s also specific to Disney+. We’ve told people, ‘Hey, all of this is going to be available to you on Disney+!’”
In Disney and Pixar’s “Soul,” a middle-school band teacher finds himself in The Great Before—a fantastical place where new souls get their personalities, quirks and interests before they go to Earth. Unfortunately, Joe Gardner (voice of Jamie Foxx) doesn’t feel like he belongs in this land of new souls. Determined to return to his life, he teams up with a precocious soul, 22 (voice of Tina Fey), who has never understood the appeal of the human experience. Directed by Academy Award® winner Pete Docter, co-directed by Kemp Powers and produced by Academy Award® nominee Dana Murray, p.g.a., “Soul” will debut exclusively on Disney+ (where Disney+ is available) on December 25, 2020. ©2020 Disney/Pixar. All rights reserved.
READ: Disney Employees Hit with Fifth Round of Layoffs in Last Year While Bob Iger Gets 30% Pay Raise
Financial analyst Valliant Renegade reacted to the layoffs and specifically noted just how terrible Disney+ has performed.
He said, “Disney’s direct-to-consumer, primarily Disney+, has dragged itself down into about a $15 billion hole. That is to say that they have spent $15 billion more since they launched the service than they have produced.”
“And as of right now, if Disney is going to make good on its promises for the last several years to Disney stockholders and investors in Wall Street at-large that means that Disney+ is going to have to show some sort of profit, maybe if even only a dollar by the time we reach the close of the fiscal year, which will be September 30th of 2024, 9 months from now,” Valliant Renegade added.
He also shared he believes that the layoffs will probably tend towards the higher end of Tech Crunch’s estimate, “I think the layoffs at Pixar … are probably going to err to the higher side of that 20% figure. It would not at all surprise if it may even exceed that.”
“I have posited many times that it’s probably about that point when Disney needs to start looking at consolidating Walt Disney Animation and Pixar into a singular studio because there’s no difference between the two of them anymore,” Valliant Renegade asserted. “Do they really need two very expensive corporate hierarchies to run these two things or can they bring it all under one banner? Because quite frankly the most valuable part of Pixar is in its past.”
MAKING SPACE – Disney and Pixar’s “Lightyear” introduces Alisha Hawthorne (voice of Uzo Aduba), Buzz’s long-time commander, fellow Space Ranger and trusted friend. Directed by Angus MacLane (co-director “Finding Dory”) and produced by Galyn Susman (“Toy Story That Time Forgot”), the sci-fi action-adventure opens in U.S. theaters on June 17, 2022. © 2022 Disney/Pixar. All Rights Reserved.
It’s hard to disagree given the recent box office hauls of the studio. Elemental only grossed $486.6 million worldwide, but had a $200 million production budget. That means the film likely lost money because it needed to earn at least $500 million to break even.
Lightyear only grossed $218.7 million globally in 2022. It also had an estimated production budget of $200 million, meaning it lost even more than Elemental.
Before that, Onward only grossed $133.3 million globally in 2020. It too had a production budget of $200 million meaning it lost hundreds of millions of dollars as well.
OH BROTHERS – In Disney and Pixar’s “Onward,” two teenage elf brothers embark on an extraordinary quest to discover if there is still a little magic left in the world. Featuring Tom Holland as the voice of Ian Lightfoot, and Chris Pratt as the voice of Ian’s older brother, Barley, “Onward” opens in U.S. theaters on March 6, 2020. ©2019 Disney/Pixar. All Rights Reserved.
What do you make of this report that Pixar will be laying off a number of its employees?
