Disney-owned Pixar, a computer animation studio, is laying off 14% of its staff, reducing the number of streaming series it produces. The layoffs will affect about 175 employees, as the studio cuts back on production. Reports back in January suggested that Pixar could potentially cut up to 20% of its staff, but a source familiar with the matter stated that those estimates were too high.
This move comes as Disney implements a companywide cost-cutting effort to save money and mitigate losses from its streaming business. In its recent fiscal quarter, Disney reported increased streaming revenue but reduced operating losses, a sign that its strategy may be working.
However, Pixar has been facing challenges, both at the box office and creatively. Despite a string of successful films in the past, recent releases like “Lightyear” and “Onward” have underperformed. The studio’s focus on streaming content has impacted the quality of its traditional output, leading to questions about its creative direction.
Dean Stephen Galloway of Chapman University’s Dodge College of Film and Media Arts noted that Pixar needs to refocus its efforts and return to its innovative roots. The studio is banking on the upcoming release of “Inside Out 2” to reignite its success.
Overall, Pixar’s restructuring reflects broader changes in the entertainment industry as companies navigate the shift towards streaming services. The studio’s future success will depend on its ability to balance innovative storytelling with commercial appeal.
This story originally appeared in Los Angeles Times.