New Disney layoffs hit Pixar’s Bay Area animation studio

Disney has confirmed a new round of layoffs across its entertainment divisions. Pixar Animation Studios, based in Emeryville, is absorbing a significant portion of these staff reductions. This decision arrives as the parent company continues to restructure its operations under CEO Josh D’Amaro to focus on specific production volumes and theatrical releases.

While exact figures remain undisclosed, reports suggest that fewer than 10% of the studio's workforce is impacted. This shift follows a similar reduction in 2024, when the studio moved away from producing original streaming series to prioritize feature-length theatrical projects. These changes are part of a broader corporate evaluation of resource management and production output.

Despite the success of Toy Story 5, which recently hit major box-office milestones, the studio has experienced inconsistent financial results with newer titles like Elio and Hoppers. Management is now adjusting its strategy to better align with long-term goals for streaming and consumer product revenue. The cuts span multiple sectors within Disney, including ESPN and National Geographic.

These staffing changes are designed to support a more agile production environment. The studio continues to develop upcoming projects such as Incredibles 3 and a new original film titled Gatto. For now, the Emeryville site remains a key creative hub, though the recent layoffs reflect the current realities of an entertainment industry in a state of rapid transition.