Walt Disney Co.-owned computer animation studio Pixar is laying off 14% of its staff, as it cuts back on the number of streaming series it produces.
The layoffs, which will affect about 175 employees, were signaled as far back as January. Reports then suggested that the studio could cut up to 20% of its staff. However, a person familiar with the matter, who was not authorized to comment, said at the time that those estimates were too high.
The cutbacks at Pixar come as the Walt Disney Co. has embarked on a major, company-wide cost-cutting effort stemming from the Burbank media and entertainment giant’s plan to stem losses from its streaming business and save money.
Emeryville, Calif.-based Pixar, in particular, has also struggled to break out of a pandemic-induced slump at the box office. While the storied computer animation studio known for “Toy Story,” “Finding Nemo” and “Up” once churned out hit after hit, its recent performance has been mediocre.
Animated films such as “Toy Story” spinoff “Lightyear,” released in 2022, was a disappointment at the box office, as was 2020’s “Onward.” Last year’s “Elemental” opened with weak ticket sales but managed to recover thanks to strong word-of-mouth reviews.
The studio has high hopes for “Inside Out 2,” a sequel to the 2015 hit that will come out this summer.