By Thomas Buckley | Bloomberg
Walt Disney Co.’s Pixar subsidiary, the pioneering animator that made Toy Story and Finding Nemo, is cutting 14% of its staff, part of an ongoing belt tightening by its parent.
About 175 employees are getting layoff notices Tuesday, the company said.
The reductions reflect a decision to refocus Pixar on feature films and move away from the production of TV series for the Disney+ streaming service. Pixar President Jim Morris outlined the shift in a memo to employees that was seen by Bloomberg.
Disney Chief Executive Officer Bob Iger continues to seek ways to reduce costs as part of a plan to eliminate $7.5 billion in annual expenses. That has resulted in more than 8,000 job cuts. Last week, he said marketing outlays for the Disney+ streaming service will come under the knife.
Iger has also said he wants to reduce the quantity of films Disney releases, to focus more on quality.The cuts follow media reports in January that Emeryville-based Pixar would be eliminating some jobs. The studio cut 75 positions in June 2023.
Like many film studios, the animation house has fallen on hard times in the aftermath of the Covid-19 pandemic. Filmmakers and theaters have struggled to lure fans back to the big screen, with box-office receipts running about a third below earlier levels.
Three Pixar films were released online during the pandemic, while the most recently theatrical release, Elemental, delivered one of the studio’s lowest US openings ever. The picture went on to deliver $496.4 million in global ticket sales.
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