Disney Layoffs Impact Pixar Even as Toy Story 5 Approaches $1 Billion in Box Office Sales

Disney recently laid off hundreds of employees across various divisions, including National Geographic and ESPN. Pixar, the renowned animation studio, faced significant cuts, reportedly letting go of around 100 employees, which is about 9% of its 1,100 staff. Some sources suggest the number could be as high as 150.

The layoffs primarily affected Pixar’s production and operations teams, and it’s still uncertain if any top executives were part of the cuts. This marks the largest round of layoffs at Pixar since May 2024, when approximately 175 employees, or 14% of the workforce, were let go.

Insiders indicate that the layoffs are linked to the underwhelming performance of “Hoppers,” which debuted in March. Despite receiving strong reviews with a 94% rating on Rotten Tomatoes, it only managed to pull in around $390 million at the box office. In contrast, “Toy Story 5” has already grossed $957 million.

Since the COVID-19 pandemic, Pixar’s box office performance has been inconsistent. For every success like “Inside Out 2,” which grossed $1.7 billion, there’s been a flop like “Elio,” which earned just $154 million. Several Pixar films released in the 2020s, such as “Luca” and “Turning Red,” went straight to Disney Plus, which some executives believe may have conditioned audiences to watch Pixar films at home. This shift likely contributed to the success of sequels in established franchises like “Inside Out” and “Toy Story,” while new original films like “Elio” have struggled to attract viewers.

Looking ahead, Pixar’s next project is an original film titled “Gatto,” set to release next March, featuring Mark Ruffalo as a black cat living in Venice, Italy. The studio is also developing “The Incredibles 3,” scheduled for June 2028.

Bring on Toy Story 6!