Disney’s once legendary animation studio that has turned woke in recent years, Pixar, is set to experience significant layoffs in 2024 as part of a larger strategy by Disney to enhance streaming profitability.
TechCrunch reports that Pixar, the once legendary animation studio and a subsidiary of Disney, is facing significant layoffs this year as part of Disney’s aggressive strategy to increase streaming profitability. While initial reports from sources within the company hinted at a drastic reduction of up to 20 percent, which would downsize Pixar’s team from 1,300 to under 1,000, Pixar has indicated that these numbers might be overstated. However, the exact number of impacted employees has yet to be announced.
The Pixar layoffs reportedly include headcount that was hired for Disney+ — hires Disney pushed on Pixar to produce for its streaming division, which hasn’t yet turned a profithttps://t.co/O7TR3HoMwE
— Culture Crave 🍿 (@CultureCrave) January 12, 2024
The layoffs are reportedly part of Disney’s goal to drive its streaming service, Disney+, towards profitability. Despite a major increase in Disney+’s subscriber count — which saw an addition of 7 million new subscribers in Q4, bringing the total to 150.2 million — the streaming division has yet to turn a profit. However, Disney+ reported a reduction in its deficit from nearly $1.5 billion in Q4 2022 to $387 million in Q4 2023.
Disney’s CEO, Bob Iger, has articulated a clear vision for the company’s restructuring, aimed at achieving “tremendous efficiencies.” Iger, during an earnings call, emphasized that “Turning streaming into a profitable growth business” was a key goal for 2024. This vision includes integrating Hulu content into Disney+ in the U.S.
Breitbart News’ John Nolte recently reported on Pixar’s latest “box office humiliation” with the theatrical release of Soul:
Yes, Pixar’s Soul is a 2020 title produced for wide theatrical release and thwarted by all the stupid, anti-science social distancing during the pandemic. Yes, it was released on Disney+, the Disney Grooming Syndicate’s money-losing streaming service… I am a fair man who readily acknowledges all those caveats.
Still, y’all…
Soul, a feature-length animated film starring a black character, was released into 1,350 theaters over the Martin Luther King Jr. four-day holiday weekend and grossed exactly — get ready to laugh — $557,000.
As Brandon Katz, an entertainment industry strategist at Parrot Analytics, puts it, “Disney had more or less trained audiences to expect big hot Pixar content at home… Retraining the audience to re-embrace the theatrical experience and prioritize that…takes time.” Katz further noted that audience preferences have evolved, with a shift away from pre-established IPs towards a desire for new, original content.
Katz added: “That pendulum swing has been hard for all studios, Pixar included, to keep up with. If you look at their box office history, [2017’s] ‘Coco’ was their last megabucks box office original — meaning, surpassing $500 million-plus worldwide.”
Despite these challenges, Pixar is not slowing down its production slate. The studio is set to release an Inside Out sequel and Elio, a new film about an intergalactic adventure, in 2024 and 2025, respectively.
Read more at TechCrunch here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.