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The Walt Disney Company has unleashed a fresh bloodbath across its entertainment empire, with Pixar taking a major hit despite the blockbuster success of “Toy Story 5.”
The “Mouse House” announced several hundred layoffs Tuesday in its third round of cuts this year, affecting Disney Entertainment Television, ESPN, corporate divisions and Disney Studios, according to SFist.
Pixar’s Emeryville animation studio was hit hardest within the film division. Disney has not confirmed how many Pixar workers lost their jobs, but a source told TheWrap that roughly 116 employees were laid off.
Many of the Pixar cuts were concentrated in production and operations and reflected the studio’s current slate of projects rather than any single movie’s performance.
“These changes are part of our continual evaluation of how we manage resources and reinvest across the company as our industry continues to evolve,” a Disney spokesperson told the outlet.
The latest cuts come despite “Toy Story 5” delivering a massive box office debut after hitting theaters June 19.
The recent installment in the animated franchise raked in an estimated $312 million worldwide during its opening weekend, including a franchise-record $160 million domestically.
Pixar’s recent original movies, however, have produced more mixed results at the box office.
“Elio” posted the weakest opening weekend in the studio’s history, while “Hoppers” earned stronger reviews and better ticket sales but still fell short of Pixar’s established franchises’ commercial success.
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The Emeryville studio has already endured repeated rounds of job cuts.
Pixar eliminated about 175 employees, or roughly 14% of its workforce, in 2024 after cutting another 75 positions the previous year as Disney shifted away from prioritizing streaming content and refocused on theatrical releases.
Disney then eliminated roughly 1,000 more positions in April across marketing, television, ESPN, technology, studio operations and corporate teams as it continued reshaping its workforce.
“We’re building a company that’s more agile and better equipped for how the entertainment business is changing,” Disney CEO Josh D’Amaro told employees in April.
This week’s cuts also reportedly hit National Geographic particularly hard.
Many of the eliminated ESPN positions were behind-the-scenes roles tied to the company’s integration of the NFL Network.