Following 75 people being let go in June 2023, Pixar is reportedly facing even more layoffs in 2024 as Disney+ continues to make financial progress but still struggles to become profitable.
According to a new report in TechCrunch, sources at Pixar claim the layoffs will be “significant and as high as 20%.” This would seemingly bring Pixar’s team from roughly 1,300 to around 1,000.
In response, Pixar told TechCrunch those estimates are “too high” and that the amount of employees that will be impacted by these layoffs is still up in the air. It appears some of the deciding factors are production schedules, staffing for future films, and more. Pixar also notes the layoffs are “not imminent” and will occur in the later parts of 2024.
As to which employees may be impacted, the sources note some of the Pixar employees that will be laid off are those that were hired specifically for Disney+.
Disney+, as we previously mentioned, is still struggling to become profitable, although it is closer than ever before as Disney said it expects to “achieve profitability in Fiscal 2024.” As part of Disney’s Q4 FY2023 earnings, CEO Bob Iger said the company is finally gearing up to move beyond its “period of fixing,” which also sadly included layoffs as part of roughly $7.5 billion in cost reductions.
Disney laid off 7,000 employees beginning on March 2023 as part of a “strategic realignment,” and those first 75 employees from Pixar were part of that. That round of layoffs included Lightyear director Angus MacLane and Galyn Susman, the lighting supervisor who became known for saving Toy Story 2 after it was accidentially deleted off of Disney’s servers.
Pixar has had a bit of an interesting journey the past few years, and Onward marked a big shift for the company. While the film debuted in theaters on March 6, 2020, the COVID-19 pandemic caused Disney to release the film digitally just two weeks later on March 20. It appeared on Disney+ on April 3.
Pixar’s next few films – Soul, Luca, and Turning Red – would all go to a Disney+-only release due to COVID-19 concerns. Lightyear marked a return to theaters in 2022, but it ended up earning just $118.3 million in North America, which only put it ahead of Onward’s $61.5 million for all Pixar films. 2023’s Elemental fared better despite a slow start, as it brought in $154.4 million during its domestic run. It was also Disney+’s most-watched premiere of 2023.
Looking forward, Pixar is set to release Inside Out 2 on June 14, 2024, Elio on June 13, 2025, and Toy Story 5 in the future. Additionally, Soul, Luca, and Turning Red are finally getting their chance to shine in theaters for the first time beginning today, January 12.
IGN has reached out to Disney for comment.
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Adam Bankhurst is a news writer for IGN. You can follow him on Twitter @AdamBankhurst and on Twitch.
Laura Davis is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Broadway, she offers readers an insider’s perspective on the world of movies, music, and pop culture.
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