(NewsInsights.org) – The studio that brought audiences animated mega-hits like “Toy Story,” “Monsters, Inc.,” “Finding Nemo,” and “Up,” among many others, has led a storied history from its origins with George Lucas to significant investments from Steve Jobs when the company went public, leading to a $7.4 billion stock buyout by Disney, in 2006, making it Disney subsidiary. However, after months of delay, Pixar’s president, Jim Morris, announced layoffs would begin effective immediately in a memo to employees on Tuesday, May 21.
Morris told his colleagues that downsizing by approximately 14%, or 175 individuals, was “one of the hardest changes [they’d] had to make.” He lamented the professional loss “of talented and dedicated colleagues and friends.”
Additionally, Morris mentioned “the challenges in our industry over the past few years” without going into specifics. The pandemic hit Pixar, a company that released films to theaters, hard. Instead, the studio released at least three features directly to Disney+ streaming during that timeframe. However, it lost millions in anticipated revenue and marketing.
“Lightyear,” the next feature Pixar released in theaters, flopped. Critics panned the animated film, and audiences simply didn’t respond as they had to previous “Toy Story” installments.
Pixar might have weathered that storm as part of the greater Disney empire, except that Disney was also tightening its belt after recent management changes. Retired CEO Bob Iger came out of retirement to oust his replacement, Bob Chapek, at the Disney board’s request after a series of missteps caused corporate earnings to plummet in 2022 and damaged the company’s reputation with employees and consumers.
To correct course and cut costs, Iger had to lay off nearly 7000 Disney employees in 2023. Pixar only delayed its cuts while working on ongoing projects. However, Morris had warned his colleagues the day of reckoning was approaching for more than a year.
Morris concluded his memo by thanking his coworkers and expressing his hopes that their “paths will cross again, both professionally and personally.”
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