Pixar Lays Off Employees Despite Toy Story 5 Box-Office Success

On Tuesday, Disney implemented a widespread series of layoffs affecting various branches, including National Geographic and ESPN. The animation powerhouse Pixar was hit particularly hard; according to reports from Deadline and TheWrap, approximately 100 to 150 staff members—a significant portion of its 1,100-person workforce—were let go.

The job cuts primarily impacted Pixar’s operations and production divisions. While the full extent of the restructuring remains unclear, this marks the most substantial reduction in force at the studio since May 2024, when roughly 175 employees—about 14% of the staff—were terminated.

Insiders suggest that the recent downsizing is linked to the disappointing box office performance of Hoppers, which premiered this past March. Despite earning critical acclaim—including a 94% approval rating on Rotten Tomatoes—the film only grossed $390 million. In stark contrast, Toy Story 5 continues to dominate, having already amassed $957 million globally.

Pixar has navigated a turbulent post-pandemic theatrical landscape. The studio’s recent history is marked by extreme disparities, oscillating between massive hits like Inside Out 2 ($1.7 billion) and relative commercial struggles like Elio ($154 million). Analysts suggest that the studio’s strategy of prioritizing streaming releases for films like Luca and Turning Red may have inadvertently conditioned viewers to bypass theaters, making it increasingly difficult for original IPs to thrive compared to established franchises like Toy Story or Inside Out.

Looking ahead, Pixar is set to return to original storytelling with Gatto, slated for release next March, which features Mark Ruffalo as a Venetian cat. Additionally, the studio is currently deep in development on The Incredibles 3, which is scheduled for a June 2028 debut.

Could a sixth installment be on the horizon?

Source: Polygon