Daily Reports
Pixar's Major Shift: From Streaming Back to Films
Pixar Animation Studios, a subsidiary of Disney, has announced significant layoffs, affecting 14% of its workforce, or around 175 employees. This move is part of a broader strategy to redirect focus away from content creation for the Disney+ streaming platform and back to producing animated films.
In an internal memo, Pixar President Jim Morris justified the layoffs by emphasizing the need to concentrate on films. The decision comes after recent box office disappointments, including 'Buzz Lightyear' and 'Elementary', which, despite substantial budgets, underperformed at the box office. 'Buzz Lightyear', released in 2022, grossed $226 million on a $200 million budget, while 'Elementary' achieved just under $500 million.
Pixar had previously expanded its efforts into animated series to bolster Disney+'s launch, producing shows like 'Cars: On the Road' and 'Welcome to Doug's'. However, with the new directive, the studio aims to rejuvenate its film success with projects like 'Vice-versa 2', continuing the story of Riley's emotional adventures, and 'Elio', centered around a boy who becomes Earth's ambassador to extraterrestrial civilizations, scheduled for 2025.
Amidst these changes, Disney is undergoing a broader cost-saving initiative led by former CEO Bob Iger, who returned to the helm last year. This initiative has resulted in the collective layoffs of over 8,000 employees, primarily affecting Disney's media branches, including Disney+.
Despite these shifts, Disney announced its streaming service turned profitable for the first time since its 2019 launch. However, the company's overall net profit dropped to $216 million from $1.5 billion during the same period last year, largely due to asset depreciation.
- Pixar's recent struggles have spurred them to refocus on their core strength: animated movies. The studio's reputation had taken a hit after several high-budget films did not meet box office expectations, pushing them to recalibrate their strategy.
- The layoffs and strategic shift come at a time when Disney is still navigating the financial impacts of the pandemic, which has affected content production and consumption patterns globally.
- Pixar's upcoming projects, 'Vice-versa 2' and 'Elio', are highly anticipated and are expected to revitalize the studio's standing in the animation industry. Fans and critics alike are looking forward to what these new releases will bring to the table.
