In response to an overstaffing situation, Walt Disney Co’s (NYSE:DIS) Pixar Animation Studios is reportedly planning to reduce its workforce.
What Happened: A source familiar with the matter informed Reuters that Pixar, having wrapped up the production of certain projects, has more staff than required. Consequently, the studio is looking to lay off employees.
Notably, tech news site TechCrunch had previously reported that Pixar was looking at staff reductions of up to 20% in the coming months.
The source, however, refuted this figure and clarified that Pixar has not yet finalized the number of job cuts or when they will occur. The layoffs are not expected to impact the studio’s theatrical output.
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The source added that Pixar’s Emeryville studio in California had staffed up to complete streaming series, leading to the current overstaffing issue as these projects conclude.
At the time of writing this article, Benzinga is yet to receive a response from Disney for the queries sent via email.
Why It Matters: This development follows a series of changes at Disney’s Pixar. Last year, Pixar reportedly cut 75 positions, including those of two executives behind the film “Lightyear,” amid box office disappointment. This was seen as the studio’s first significant job cut in a decade.
Disney CEO Bob Iger, who returned to the company in 2022 to oversee a turnaround, has indicated that Disney will reduce its in-house streaming content and instead license shows and movies from third parties. Despite Iger’s ambitious strategic turnaround plan, Disney’s stock rose just 1.5% in 2023 compared to a 25% increase in the broader U.S. stock market.
Walt Disney. Photo via Shutterstock
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