Disney's Pixar to lay off around 14% of staff in latest industry pullback, reports say

By Bill Peters

Move is part of an effort to 'return to our focus on feature films,' according to memo

Walt Disney Co.'s Pixar Animation Studios is laying off around 14% of its workforce, a move that will affect some 175 employees, according to multiple reports.

The job cuts are part of an effort to "return to our focus on feature films," Pixar President Jim Morris said in a memo, the New York Times reported, adding that the cuts followed weak box-office showings for films like "Lightyear" and "Elemental." The Times said Pixar would also stop making original shows for Disney's (DIS) streaming service Disney+.

The Hollywood Reporter, which reported the news earlier in the day, said that the dismissals were part of an effort by Disney to focus more on quality, after feeding more quantity to its streaming platform and wearing down creative teams.

Disney and other entertainment companies have cut costs and pulled back on TV production as investors push for bigger streaming profits and the industry retrenches following last year's writers and actors strikes.

Walt Disney did not immediately respond to a request for comment.

Shares were up fractionally during the day.

-Bill Peters

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-21-24 1612ET

Copyright (c) 2024 Dow Jones & Company, Inc.