Inside Out 2 Inside Out 2

The biggest layoffs in the history of Pixar Animation Studios have begun.

The studio will lay off around 14% of its 1,300-person workforce. The Hollywood Reporter and Reuters news service both put the approximate number of layoffs at 175 people. THR additionally reported that “top leadership isn’t impacted” by this restructuring.

The studio’s reduced staff is being attributed to a decision by the company to move away from series production and return to focusing on feature films. Disney’s returning CEO Bob Iger recently said that he wanted to “reduce output and focus more on quality” across the studio’s film divisions, as well as put a greater emphasis on sequel production.

The studio’s most ambitious series project, Win or Lose, still doesn’t have a release date, though it is widely anticipated to release on Disney+ sometime this year.

News of these layoffs was first revealed in January, though specific numbers were unknown at that point. In 2023, Pixar laid off 75 employees, which prior to today’s news, was the largest staff reduction in a decade. Even after today, the studio will still employ well over one thousand workers.

Disney will release Pixar’s next theatrical feature, Inside Out 2, on June 14. Other announced films include Elio (2025) and Toy Story 5 (2026).

Below is the full text of the memo sent to employees by Pixar president Jim Morris:

Hello everyone.

I have spoken to you many times over the last year about our pending move away from series production for Disney+, the return to our focus on feature films, and the reduction in our team that would accompany that. That day is here, and while it is not coming as a surprise to anyone, it is one of the hardest changes we’ve had to make, as it means we will be parting with a number of talented and dedicated colleagues and friends.

Today, leaders will begin the process of notifying employees whose positions are being impacted. Calendar invites to speak with a leader have already gone out to those individuals, and we anticipate we will have connected with everyone impacted by the end of the day.

I want to assure you that will be providing extensive support as our colleagues start to transition out of the studio. We are committed to ensuring that their departure is handled with the utmost respect and care at every stage. This is important to me, and I understand how important this is to all of us in the Pixar community. I will host a brief Studio Meeting via Zoom this afternoon at 5:00 to talk more about today’s announcement.

Despite the challenges in our industry over the past few years, you have all consistently shown up to contribute, collaborate, innovate, lead, and do great work at this studio. I give you my deepest thanks, and for those who will be leaving us, I am hopeful that our paths will cross again, both professionally and personally.

Jim