Major Pixar Layoffs, Long-Expected, Now Underway In Restructuring (Exclusive)

The gates to Pixar’s campus in Emeryville, California.

Frankie Taggart/AFP via Getty Images)

The long-expected layoffs at Pixar Animation Studios have begun.

Today, leadership at the storied company that traces it origins to the late Steve Jobs and was bought by Disney in 2006 will notify employees of the reductions, The Hollywood Reporter has learned. It is the biggest restructuring in Pixar’s history, although top leadership isn’t impacted.

Approximately 14 percent of Pixar’s workforce, or around 175 employees, will be let go. Before the reductions, approximately 1,300 people worked at the animation studio.

The layoffs are part of Disney chief Bob Iger’s overarching mandate to return to a focus on quality, versus churning out content for streaming which was a priority for his sort-lived successor, Bob Chapek. Disney execs have talked about returning to a focus on quality during numerous earnings calls this year, saying creative teams across the company were stretched too thin in the arms race to feed streamers.

Pixar employees have known since January that layoffs were coming. If there’s some solace to be had, it’s that reductions are less than the 20 percent reported in January by some news outlets. Nor is Pixar being singled out.

There were layoffs across all of Disney last year but cuts at Pixar were delayed because of production schedules, sources say. Pixar — led by Pete Docter — will no longer be focusing on direct-to-streaming series, but on its feature films. That excludes Win or Lose, which is set to debut later this year.

The once-invincible animation studio suffered a major setback during the pandemic era when the Chapek regime decided to send Luca, Coco and Turning Red straight to Disney+ even though cinemas had begun to reopen or were in full recovery mode. And then its first post-COVID theatrical release, Lightyear was mostly dismissed by critics and audiences, exposing Pixar to ongoing scrutiny.

Pixar received good news last year with the release of Elemental, which earned nearly $500 million globally to become the biggest original animated movie since Pixar’s Coco in 2017. It was also a streaming sensation.

And theater owners have high hopes for Inside Out 2, which opens June 14 in North America (the trailer was the most watched animated trailer in the company’s history). Other upcoming films include next year’s Elio and Toy Story 5 in 2026.

The full memo from Pixar president Jim Morris to staff on Tuesday is below:

Hello everyone. 

I have spoken to you many times over the last year about our pending move away from series production for Disney+, the return to our focus on feature films, and the reduction in our team that would accompany that. That day is here, and while it is not coming as a surprise to anyone, it is one of the hardest changes we’ve had to make, as it means we will be parting with a number of talented and dedicated colleagues and friends.

Today, leaders will begin the process of notifying employees whose positions are being impacted. Calendar invites to speak with a leader have already gone out to those individuals, and we anticipate we will have connected with everyone impacted by the end of the day. 

I want to assure you that will be providing extensive support as our colleagues start to transition out of the studio. We are committed to ensuring that their departure is handled with the utmost respect and care at every stage. This is important to me, and I understand how important this is to all of us in the Pixar community. I will host a brief Studio Meeting via Zoom this afternoon at 5:00 to talk more about today’s announcement.

Despite the challenges in our industry over the past few years, you have all consistently shown up to contribute, collaborate, innovate, lead, and do great work at this studio. I give you my deepest thanks, and for those who will be leaving us, I am hopeful that our paths will cross again, both professionally and personally.

Jim