Disney’s Layoffs Hit Pixar Hard Despite “Toy Story 5” Success
Even with the impressive performance of “Toy Story 5,” the Walt Disney Company is facing significant challenges, particularly within Pixar, which reflects a deeper issue for its entire entertainment division.
On Tuesday, Disney announced another round of layoffs, marking the third time this year. These cuts impact various divisions including Disney Entertainment Television, ESPN, its corporate sector, and Disney Studios, as reported by multiple sources.
The Animation Studio in Emeryville, home to Pixar, took the brunt of these layoffs. While Disney hasn’t specified the exact number of employees released, sources indicate around 116 were let go, highlighting the studio’s vulnerability in a shifting industry landscape.
The layoffs mainly target production and operational roles, suggesting a reevaluation of project needs rather than reflecting the performance of any single title.
“These changes are part of our ongoing evaluation of how we manage and reinvest resources across the company as our industry continues to evolve,” a Disney spokesperson commented.
“Toy Story 5,” which debuted in theaters on June 19th, has achieved remarkable box office success—bringing in an estimated $312 million globally during its opening weekend, including a franchise-high $160 million in the U.S.
However, Pixar’s recent original films have received a mixed reception at the box office. For instance, “Elio” recorded the weakest opening weekend in Pixar’s history, while “Hoppers,” despite good reviews, did not match the financial success of the studio’s more established franchises.
Pixar has experienced several rounds of layoffs in recent years. The studio plans to cut approximately 175 jobs next year, which accounts for about 14% of its workforce, following last year’s reduction of 75 positions. This comes as Disney shifts its focus from streaming content to theatrical releases.
Earlier this year, Disney also laid off around 1,000 workers across various departments, including marketing and technology, as part of its broader restructuring efforts.
“We are building a company that is agile and equipped to respond to changes in the entertainment business,” noted Disney CEO Josh D’Amaro in a prior communication to employees.
This week’s layoffs have also reportedly had a strong impact on National Geographic, with several behind-the-scenes positions at ESPN being eliminated, particularly concerning the integration of the NFL Network.
Employees were informed of their job status on Tuesday morning. Going into late 2025, Disney is projected to have around 230,000 employees worldwide.
Despite the layoffs, Pixar has plans for upcoming projects, including an original feature titled “Gut,” directed by Enrico Casarosa, as well as “Incredibles 3.”
