The news of layoffs keeps coming; we are here with Pixar layoffs this time. Pixar Animation Studios, a subsidiary of The Walt Disney Company, has announced layoffs that will affect 20 percent of its workforce, a development that has shocked the animation industry.
The layoffs are expected to take place later this year and affect 1,300 employees, reducing the studio’s team to less than 1,000. Here’s all we know.
Pixar layoffs: A sign of the times in the animation industry
The decision to downsize is not surprising, given the current state of the animation industry. With the rise of streaming services, the way people consume content has changed dramatically. The COVID-19 pandemic has also significantly impacted the entertainment industry, and many studios are struggling to adapt to the new normal.
Pixar’s struggles are not unique to the studio. The entire animation industry has faced challenges in recent years, with some studios closing down altogether. The transition to streaming has led to a decline in advertising revenue for TV channels, and the Disney+ streaming service launched in 2019 has yet to turn a profit.
Despite these challenges, Pixar remains a strong brand, known for beloved films such as Finding Nemo, Monsters, Inc., WALL-E, and Toy Story. The studio’s last film, “Elemental,” was a bomb at the box office but has since grossed half a billion worldwide and was the most-watched movie on Disney+ this quarter.
The Pixar layoffs are a sign of the times in the animation industry. With the shift to streaming, studios are having to adapt to new audience behaviors and preferences. Audiences are facing sequel and franchise fatigue, and all studios, including Pixar, are struggling to keep up with this pendulum swing.
In response to these challenges, Pixar is preparing to release an “Inside Out” sequel and a new movie called “Elio” in 2025. The studio is also focusing on producing less content, which could help it keep its budget in line. Pixar’s budget hovers around $200 million per movie, while other animation companies have smaller budgets.
The Pixar layoffs are not the first time the studio has had to make cuts. Earlier in 2023, the studio laid off 75 people, including the two executives behind “Lightyear.” The cuts were part of Disney CEO Bob Iger’s plan to reduce headcount by 7,000 and costs by $5.5 billion.
Iger cited “turning streaming into a profitable growth business” as the most important opportunity for 2024. Disney+ aims to strengthen its streaming business by acquiring Hulu content in the US this year.
The layoffs at Pixar are a reminder that the animation industry is facing unprecedented challenges. The shift to streaming has caused a significant shift in audience behavior and preferences, and studios must adapt to these changes to stay relevant. While the layoffs are unfortunate, they are necessary for Pixar to remain competitive in the industry.
Ultimately, the layoffs at Pixar are a sign of the times in the animation industry. The studio’s focus on producing less content and adapting to new audience behaviors and preferences can help it remain competitive in the industry. While the layoffs are unfortunate, they are a necessary step for Pixar to continue to thrive in the coming years.
Featured image credit: Max Cortez / Unsplash
