Pixar Animation Studios, known for its iconic animated films, is set to undergo layoffs as part of Disney’s efforts to prioritize content quality over quantity. Around 175 employees, accounting for approximately 14% of the studio’s workforce, will be affected by the layoffs, according to a spokesperson from parent company Walt Disney.
The decision to downsize Pixar comes as CEO Bob Iger aims to address the company’s recent box office struggles, which have been exacerbated by content choices and pandemic-related theater closures. While Disney has experienced mixed success with franchises like the Marvel Cinematic Universe, it has faced challenges in connecting with audiences through its animated features.
During the pandemic, Disney turned to its streaming service, Disney+, to bolster its content offerings. This strategy involved stretching its creative teams thin, resulting in a shift away from theatrical releases and a greater emphasis on digital content. Consequently, parents and viewers became accustomed to seeking out new Disney titles on streaming platforms rather than in theaters, even when Disney later chose to release films in cinemas.
Compounding the issue, some audience members began to feel that Disney’s content had become too existential and focused on social issues beyond the comprehension of children. This perception further diminished the appeal of the company’s animated features.
The financial impact of this shift is evident in the box office performance of Disney’s animated films. Since 2019, no Pixar or Walt Disney Animation feature has surpassed $480 million in global box office revenue. In comparison, films like “Coco,” “Incredibles 2,” and “Toy Story 4” generated significantly higher earnings just prior to the pandemic.
With Bob Iger back as CEO, Pixar plans to refocus on theatrical releases, moving away from short-form series exclusive to Disney+. By prioritizing traditional movie releases, Pixar hopes to regain its previous success and reconnect with audiences on the big screen.
In summary, Pixar Animation Studios is undergoing layoffs as part of Disney’s strategy to prioritize content quality. The company’s recent box office struggles, combined with the impact of the pandemic, have prompted a shift towards digital content. However, this move has led to a perception that Disney’s content is too existential and unrelated to children. With Bob Iger back at the helm, Pixar aims to refocus on theatrical releases and regain its position as a leader in animated filmmaking.
