Pixar plans to cut 20% of its workforce, Disney+ faces profitability challenges

News from this site on January 15, according to a new report from TechCrunch, after laying off 75 people in June 2023, Pixar will face more layoffs in 2024,Because parent company Disney’s Disney streaming service is still struggling to achieve profitability.

Pixar sources said the layoffs will be "massive, with cuts of up to 20%." According to reports, this will reduce Pixar's team size from about 1,300 to about 1,000. As for which employees may be affected, sources pointed out that employees hired specifically for Disney will be laid off.

In response, Pixar told TechCrunch that these estimates are "

too high

" and that the number of employees affected by the layoffs is still up in the air. Some of the deciding factors appear to be production schedules, staffing for future films, and more. Pixar also noted that layoffs are "not imminent" and will occur by the end of 2024. Disney’s own streaming service, Disney, is still struggling to become profitable. According to Disney's latest financial report, they plan to achieve profitability in fiscal year 2024. CEO Bob Iger said the company is ready to weather this adjustment period and has taken a series of measures to reduce costs. This includes cost reductions of approximately US$7.5 billion (approximately 53.85 billion yuan). These measures will help improve Disney's profitability and make it a sustainable business. Disney is confident in the development of the streaming media field and will continue to work hard to provide high-quality content and attract more users. In order to make "strategic adjustments", Disney began to lay off employees starting in March 2023, including 75 employees at Pixar Studio, laying off a total of 7,000 people.

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