Disney Continues Workforce Reductions with Latest Layoffs

The Walt Disney Company has announced several hundred additional layoffs across its entertainment divisions as part of ongoing efforts to reshape its workforce and adapt to an evolving industry. The latest cuts, which took place on Tuesday, have affected Disney Entertainment Television, ESPN, corporate departments, and Disney Studios.

Pixar's animation studio in Emeryville, California, was notably impacted, with sources indicating approximately 116 employees were laid off from the film division. These reductions at Pixar were reportedly concentrated in production and operations roles and reflect the studio's current project pipeline rather than the performance of any single film. A Disney spokesperson stated that these changes are part of a "continual evaluation of how we manage resources and reinvest across the company."

This development occurs despite the recent box office success of "Toy Story 5," which debuted on June 19 and generated an estimated $312 million worldwide during its opening weekend, including a franchise-record $160 million domestically. However, Pixar's more recent original films have seen mixed financial results. "Elio" experienced the weakest opening weekend in the studio's history, while "Hoppers" received stronger reviews and performed better at the box office, though it did not match the commercial success of established Pixar franchises.

The Emeryville studio has experienced multiple rounds of job cuts. In 2024 alone, Pixar eliminated about 175 employees, representing roughly 14% of its workforce, following the reduction of 75 positions the previous year. These earlier cuts signaled a strategic shift away from prioritizing streaming content towards a renewed focus on theatrical releases.

Across the broader company, Disney implemented further workforce reductions in April, eliminating approximately 1,000 positions in areas such as marketing, television, ESPN, technology, studio operations, and corporate teams. These efforts are part of a larger initiative to create a more agile organization. Disney CEO Josh D'Amaro informed employees in April that the company was aiming to be "better equipped for how the entertainment business is changing."

In addition to Pixar, this week's layoffs also reportedly affected National Geographic significantly. At ESPN, many of the eliminated roles were behind-the-scenes positions related to the integration of the NFL Network.

As of late 2025, Disney's global workforce was reported to be around 230,000 employees. Despite the current workforce adjustments, Pixar's upcoming projects are expected to include the original feature "Gatto," directed by Enrico Casarosa, and "Incredibles 3."