The Walt Disney Company is once again reducing its workforce, marking the third major round of layoffs in as many years and continuing a restructuring effort that has affected employees across nearly every corner of the entertainment giant.
A Disney spokesperson confirmed to The Wrap that the latest cuts span multiple divisions, including corporate operations, ESPN, National Geographic, and the company’s film and television businesses. While layoffs have become an increasingly familiar part of Disney’s effort to adapt to a rapidly changing media landscape, this round stood out because of where many of the cuts landed.
According to The Wrap, Pixar Animation Studios experienced the largest impact, with 116 employees losing their jobs.
The reductions come despite Pixar enjoying one of its strongest commercial successes in recent years. Toy Story 5 has performed well both critically and financially, with The Wrap reporting that the film has earned approximately $957 million worldwide. That total leaves it within striking distance of the coveted $1 billion mark at the global box office.
The film also represented a return to a more traditional Pixar approach. Rather than becoming embroiled in the cultural debates that surrounded some of the studio’s more recent releases, Toy Story 5 focused on a straightforward family story centered on the effects of excessive screen time. Whether that creative direction contributed to its commercial success will no doubt remain part of the conversation among industry observers.
Even so, strong ticket sales were not enough to shield Pixar from Disney’s latest cost-cutting measures.
In a statement to The Wrap, the company said the layoffs reflect broader business considerations rather than the performance of any individual studio.
“These changes are part of our continual evaluation of how we manage resources and reinvest across the company as our industry continues to evolve,” the spokesperson said.
The explanation is consistent with Disney’s recent strategy. Since 2023, the company has repeatedly reduced its workforce as executives attempt to balance streaming investments, traditional television declines, and shifting consumer habits. Major layoffs occurred in 2023 as part of a companywide restructuring, followed by additional cuts in 2024. This latest round extends that trend well into 2026.
The New York Post described the newest reductions as another “bloodbath,” underscoring how routine these workforce reductions have become for one of the world’s largest entertainment companies.
Despite the layoffs, Pixar’s production schedule remains active.
The studio has already announced Gatto, an original animated feature that represents another attempt to introduce a new franchise. It is also developing Incredibles 3, the latest installment in one of Pixar’s most successful series. Those projects will likely play an important role in determining whether the studio can maintain its momentum following the success of Toy Story 5.
