Most of us know Pixar as the animation studio behind some of our childhood favorites.Since releasing “Toy Story” in 1995, the studio has built major franchises around “The Incredibles,” “Finding Nemo,” “Cars,” “Inside Out,” and other films that have generated billions of dollars in box-office revenue, streaming, merchandise, and theme-park attractions.Its latest franchise release has also delivered a major theatrical win.“Toy Story 5” recently crossed $1 billion at the global box office, making it one of the highest-grossing movies released this year.But that success has not insulated Pixar from Disney’s continuing effort to reduce costs and reshape its workforce.Pixar hit in latest Disney layoff roundPixar Animation Studios is eliminating 108 positions at its headquarters in Emeryville, California, according to a Worker Adjustment and Retraining Notification (WARN) filing reviewed by TheStreet.Most of the cuts will take effect on September 26, when 104 employees are scheduled to be laid off.Two additional positions will be eliminated on November 6, followed by 1 on December 6 and another on January 2, 2027.More Layoffs:Meta layoffs take disturbing turn in new lawsuitMajor snack brand closes plant, cuts 345 jobsJPMorgan Chase pushes fraud division layoffs, despite rising revenuesThe affected employees are not represented by a union and do not have bumping rights.The reductions affect a wide range of creative, technical, and production roles.The largest single group comprises 23 technical directors, followed by 9 story artists and 7 layout artists.The cuts also include software engineers, production managers, editors, designers, systems engineers, and other production employees, according to the job list attached to the filing.The Pixar cuts are part of a broader round of layoffs affecting several hundred Disney employees across divisions, including National Geographic, ABC News, ESPN, and the company’s film and television operations.The reductions come only months after Disney’s decision to eliminate roughly 1,000 jobs across marketing, studios, television, ESPN, consumer products, technology, and corporate functions.That earlier round was announced in April by Disney CEO Josh D’Amaro, who said the company needed to become more agile and technologically equipped as its businesses changed.The April cuts were the company’s largest broad workforce reduction since 2023, when Disney announced plans to eliminate 7,000 jobs and cut $5.5 billion in costs.The newest reductions show that the company’s restructuring has continued despite leadership changes and improving results in parts of its film business.
Disney’s Pixar was affected in the latest round of layoffs.Shutterstock
Disney consolidates entertainment operationsThe latest reductions come as Disney brings more of its film, television, streaming, and gaming businesses under a unified strategy.In March, the company announced a new Disney Entertainment leadership structure combining its streaming, film, television, games, and digital-entertainment operations. The company is also working on a unified Disney+ and Hulu app experience that brings the two streaming services together.Meanwhile, its $1.5 billion partnership with Epic Games is designed to create an entertainment universe connected to Fortnite, where consumers can watch, play, and create experiences involving Disney, Pixar, Marvel, Star Wars, and other company-owned brands.Bringing previously separate operations and technologies together can create overlapping responsibilities, although Disney has not linked the Pixar layoffs to its broader consolidation.Pixar previously eliminated 175 jobsFor Pixar, the latest cuts follow an even larger restructuring two years ago.In May 2024, the studio eliminated about 175 positions, roughly 14% of its workforce, as Disney scaled back the number of original series it was developing for its streaming service, Reuters reported.The reductions followed a period in which Pixar expanded its staff to produce content for Disney+, only for Disney to later reduce its streaming investments and refocus the studio on theatrical films.Pixar’s theatrical performance has since improved significantly.Be it the success of Toy Story 5, which recently crossed $1 billion in revenue, or Inside Out 2, which officially became the highest grossing animation movie globally.Still, animation remains expensive and labor-intensive, with major films often requiring several years of work and large teams of artists, engineers, and production employees.The current job list suggests Pixar is reducing positions across both creative production and the technical infrastructure supporting its films.Related: 30-year-old restaurant chain confirms more closures in 2026