Disney cuts jobs at Pixar despite Toy Story 5 nearing $1 billion

Disney informed employees on Tuesday morning that it is cutting several hundred jobs across corporate functions, ESPN, Disney Entertainment Television, and studios, with Pixar taking the hardest hit inside the studio group. For Pixar, the timing is especially awkward: the studio is still benefiting from the strong performance of Toy Story 5.

The Pixar layoffs are concentrated in production and operations, and they are part of Disney's third round of layoffs this year as the company continues reshaping how it allocates resources across the business.

A Disney spokesperson said the company is keeping that process tied to a broader review of how it spends and reinvests money.

Josh D'Amaro offered a similar explanation, saying Disney has spent the past several months looking for ways to streamline operations while still delivering the creativity and innovation audiences expect. He also said the company wants to keep that standard across different parts of the business as the industry changes.

The cuts come even as Toy Story 5 is nearing the $1 billion worldwide box-office mark, having already cleared $957 million worldwide. Disney is making the changes while Hoppers has also performed solidly, with $389.5 million worldwide on a $150 million budget. On the Disney Entertainment Television side, National Geographic is expected to be hit the hardest.

Disney had already cut about 1,000 employees in April, making this the latest round in a year of repeated reductions. The contrast is hard to miss: one of Pixar's biggest commercial wins is arriving at the same time as its sharpest staffing cuts.

By the way, the animated movie Toy Story 5 has received high ratings.

How do you read Disney trimming Pixar while Toy Story 5 inches toward the $1 billion mark?