February 2, 2024
According to TechCrunch and Reuters, Disney is planning to lay off 300 employees from its Pixar studio. The studio currently employs 1,300 people. The reasons for the planned job cuts are a lack of new contracts, the end of work on series available for streaming and, above all, much less content being produced. If the job cuts go ahead, the Pixar team will be reduced by up to 20%.
The number of jobs to be cut is still being analyzed in terms of production schedules and staffing needs. It's worth remembering that Disney CEO Bob Iger had already announced that he would reduce the production of new content for streaming services in 2022 due to ever-increasing production costs. The Disney CEO planned to use the money saved for major film productions.
The giant's licensing of its competitors' productions has arguably changed Iger's approach to profit calculation and decision making. The planned job cuts at the Pixar studio were also influenced by the fact that 75 people (including the producer and director) were made redundant after the flop of Lightyear in 2023, and that up to 5,000 square meters of newly renovated office space was then leased.
There's no doubt that at Disney itself, the parent company of animation giant Pixar, costs were cut by $7.5 billion last year, and revenues for the whole of last year were 1% lower than in 2022 (or $14 billion). So the pressure on profitability is intense. Bob Iger once called buying Pixar "the best decision he ever made" and now he has to make another one, and not such a pleasant one. Let me know what you think in the comments.
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