"Quality Over Quantity" Disney Pixar Begins 14% Workforce Layoffs

Pixar Animation Studios, a subsidiary of Walt Disney known for producing famous animations such as Toy Story, Up, and Coco, has initiated a process to lay off about 14% of its total workforce.

[Image source=Yonhap News]

According to The New York Times (NYT) and others, Pixar President Jim Morris revealed this fact in a message sent to employees on the 21st (local time). The scale of the layoffs is about 175 people, which corresponds to approximately 14% of the total workforce. Morris explained that the reason for the reduction is that Pixar will focus again on theatrical feature-length animations instead of investing in streaming-only content.

This layoff was a measure anticipated early on. Bob Iger, CEO who returned to Disney at the end of 2022, announced a cost-cutting plan worth $7.5 billion annually and launched a large-scale workforce reduction. He also declared that Disney would reduce the number of content productions and focus on "quality" rather than "quantity."

The NYT reported, "Pixar had lost focus while being pressured to produce original series for the streaming platform Disney+," and "CEO Iger repeatedly pointed out over the past year that Disney's creative teams had been weakened too much by the streaming strategy."

The Hollywood Reporter, which first reported the news, stated, "The layoffs are in line with CEO Iger's message to focus on quality over quantity of content," adding, "In Pixar's case, the layoff process was delayed due to production schedules." Earlier, reports had emerged locally that about 20% of employees would be laid off starting from January.

Pixar, which had struggled with decreased box office revenue during the pandemic period, released three animations on online streaming platforms. Subsequently, the feature film Elemental, released in theaters in June last year, received favorable reviews but earned only $29.6 million in its opening week in North America, marking the lowest box office weekend performance in history.