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Disney began eliminating several hundred jobs across its entertainment businesses, with Pixar Animation Studios in Emeryville bearing the brunt of the cuts within the company's film division, according to multiple industry reports.
The layoffs span certain corporate operations, including ESPN, Disney Entertainment Television and the company's studios, Disney told Variety and TheWrap.
Employees were notified Tuesday, July 21.
"These changes are part of our continual evaluation of how we manage resources and reinvest across the company as our industry continues to evolve," a Disney spokesperson said in a statement.
Disney did not publicly disclose how many positions were eliminated at Pixar. TheWrap, citing an unnamed source with knowledge of the cuts, reported that about 150 Pixar employees were affected. Variety reported that most of the film division reductions occurred at Pixar and were concentrated in production and operations.
The cuts represent another blow to Pixar. The animation studio, one of the Bay Area's best-known creative employers, eliminated about 175 jobs - roughly 14% of its workforce at the time - about two years ago.
The 2024 restructuring followed Disney's decision to reduce the studio's production of original streaming series and refocus on theatrical films.
Tuesday's layoffs come despite a strong theatrical run for "Toy Story 5." The latest installment opened on June 19, earned an estimated $312 million in worldwide ticket sales during its opening weekend, including a franchise-record $160 million in the United States and Canada, according to studio estimates.
But Pixar has had less consistent results when introducing new characters and stories.
Its 2025 release "Elio" posted the studio's weakest opening weekend, while the original feature "Hoppers," released this spring, drew positive reviews and performed better at the box office but did not approach the commercial heights of Pixar sequels.
TheWrap reported that the perceived financial performance of "Hoppers" contributed at least partly to the latest reductions, citing an unnamed person familiar with the situation. Disney did not publicly identify the movie as a reason for the layoffs.
Variety reported that the staffing changes reflect Pixar's production volume and the projects currently moving through the studio. Disney has reduced the number of films and shows it produces in recent years while emphasizing theatrical releases that can also support its streaming, consumer products and theme park businesses.
The cuts are part of a broader restructuring under CEO Josh D'Amaro, who succeeded Bob Iger this year.
Disney began a separate round of approximately 1,000 layoffs in April affecting marketing, television, ESPN, product and technology teams, studio operations and corporate functions.
D'Amaro told employees at the time that the company was seeking a more agile and technologically enabled workforce as the entertainment business changed.
Disney employed about 230,000 people worldwide as of late 2025.
Other Disney units were affected Tuesday. National Geographic sustained the largest share of the cuts within Disney Entertainment Television, Variety reported. ESPN's reductions included positions connected to its integration of the NFL Network.
Pixar's upcoming film slate includes "Gatto," an original film directed by "Luca" filmmaker Enrico Casarosa, among other additional original projects. The studio is also developing "Incredibles 3."
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