Pixar Studios to Undergo Reported Layoffs
Pixar, the animation studio owned by Disney, is set to experience layoffs this year, as confirmed by the company. While initial reports suggested significant reductions of up to 20%, lowering Pixar’s team from 1,300 to under 1,000, the studio disputes these numbers. Pixar stated that the actual impact is still under assessment, considering factors such as production schedules and staffing for upcoming approved projects.
The layoffs are not immediate but are expected later in the year, aligning with Pixar’s shift towards producing fewer contents. Insider information suggests that the layoffs encompass employees hired for Disney+, a move encouraged by Disney for Pixar to contribute to its streaming division, which has not yet generated profits.
In Q4, Disney+ exceeded expectations by adding 7 million subscribers, reaching a total of 150.2 million, including Hotstar. Notably, over 50% of new U.S. customers opted for the ad-supported Disney+ product, contributing to a growth of 2 million ad-supported subscribers, totaling 5.2 million.
Related: Pixar’s Pete Docter Excited for ‘Soul,’ ‘Luca,’ and ‘Turning Red’ to Hit Theaters
Disney anticipates turning its streaming service profitable by Q4 2024, attributing this achievement to the company’s “restructuring” efforts that resulted in significant operational efficiencies, as highlighted by CEO Bob Iger in an earnings call with investors. The streaming losses have been curtailed, with Disney+ reporting a decrease from nearly $1.5 billion in Q4 2022 to “just” $387 million in Q4 2023.
During the quarter, Disney+ featured popular titles like Pixar’s “Elemental,” alongside releases from Disney and Marvel such as “The Little Mermaid” and “Guardians of the Galaxy Vol. 3.” Despite its initial classification as a box office disappointment and one of Pixar’s weakest debuts in 28 years, “Elemental” emerged as the most-watched film on Disney+ in the quarter, grossing half a billion worldwide. This success contrasts with earlier underperforming titles like “Lightyear” and “Onward,” prompting Disney to reconsider its approach to film releases.
Related: The Sketch Pad Café Now Open at Disney’s Pixar Place Hotel
In the upcoming year, the animation studio plans to unveil a sequel to “Inside Out,” followed by the release of “Elio” in 2025—a new film centered around a boy embarking on an intergalactic adventure. Can Pixar bounce back as the animation juggernaut given the steep competition it faces from Universal and DreamWorks? We will have to revisit the studio at year’s end to see if it still has it’s magic.
What can Disney do to get its box office mojo back? Let us know your thoughts in a comment.
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