Pixar Animation Studios announced significant layoffs and a strategic shift away from producing original content for Disney+ as it aims to refocus on feature films.
The studio will lay off approximately 175 employees, representing 14% of its workforce. This move comes as Pixar grapples with recent struggles, including the underperformance of some of its films and the impact of Disney’s streaming strategy.
Jim Morris, Pixar’s president, conveyed the news to employees in an internal memo, citing a renewed emphasis on feature films as the primary reason for the layoffs. This decision aligns with broader changes at Disney, led by CEO Robert A. Iger, who has emphasized cost containment and a return to high-quality content production.
Pixar’s challenges became evident after the release of Lightyear in June 2022, which failed to meet box office expectations. This setback was compounded by Elemental, which, despite a slow start, eventually grossed $500 million globally.
Analysts attributed part of Pixar’s difficulties to Disney’s strategy during the pandemic, which saw three consecutive Pixar films—Soul, Turning Red, and Luca—premiere exclusively on Disney+ rather than in theaters. This move arguably diluted Pixar’s brand, known for its theatrical successes.
REELated:
The layoffs at Pixar are part of a broader retrenchment across Disney-owned studios, including Marvel, as they pivot from an aggressive push into streaming back to their core strengths in film production. Pixar’s upcoming projects reflect this shift, with Inside Out 2 slated for release in June 14, 2024, and the previously scheduled Elio delayed until June 2025.
While Pixar will cease creating original series for Disney+, it will release its final Disney+ series, Win or Lose, later this year. Previous series like Cars on the Road and Dug Days marked Pixar’s initial foray into streaming, but the studio will now concentrate its resources on continuing its legacy of feature films.
This strategic realignment aims to restore Pixar’s standing as the premier animation studio by focusing on the high-quality, innovative films that have defined its success over the past three decades.
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