TechCrunch, a renowned news website, reports that animation studio Pixar is preparing to lay off employees, with figures possibly reaching up to 20% of their total workforce of 1,300 individuals.
Pixar has confirmed the news of upcoming layoffs, but they argue that the 20% figure is an exaggeration, although they refuse to disclose the exact number of employees to be let go. The layoffs are scheduled to take place in 2024.
The reason behind these job cuts can be attributed to Pixar’s recent box office disappointments. Films like Lightyear, Onward, and most recently, Elemental, did not meet revenue expectations, with an accumulated worldwide gross of only $496 million.
On the other hand, Disney, Pixar’s parent company, is under pressure to ensure profitability for its streaming service, Disney+. They have set a goal to achieve profitability by the fourth quarter of 2024, leading to cost-cutting measures and a reduction in workforce. As a result, some employees from Disney were assigned to work at Pixar, but with a specific focus on creating content for Disney+.
In summary, Pixar is facing the need to lay off employees due to underperforming films, while Disney is striving to make Disney+ a profitable venture by the end of 2024, resulting in the reduction of expenses and staff.
TLDR: Pixar, the animation studio, is preparing to lay off employees, although the reported figure of 20% might be exaggerated. Recent box office disappointments and the pressure for profitability from Disney’s streaming service, Disney+, contributed to these job cuts. Some employees from Disney were reassigned to Pixar to create content for Disney+.
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