Since July 21, Disney has undergone company restructuring under the leadership of Josh D’Amaro. Among their business partners, beloved CGI studio Pixar is experiencing Deja vu with layoffs. In the latest update, 108 employees are set to be removed, whether they were involved with successful films or movies the Mickey Mouse company considered financial flops. More details have revealed that other Disney-jointed studios will be experiencing firings in the upcoming months.
Josh D’Amaro’s ‘One Disney’
D’Amaro first announced his plan to restructure Disney in April, projecting around 1,000 employees to be impacted. According to The Next Web, he’s set out to transform Disney+ as the ultimate service that provides all kinds of entertainment. Project One Disney is an acquisition and layoff plan that involves converting the platform into a super app. They want to promote consumerism with associated products, such as games, cruise bookings, and merchandise.
Rather than valuing what they have, D’Amaro’s One Disney is pushing to gather every dime they can to bring their dystopian internet into reality. The partners that are targeted under this plan are Pixar, National Geographic (Nat Geo), ESPN, ABC, and Disney Entertainment Television (DET)/Disney Studios.
Why Would Disney Shrink Pixar?
Pixar, which lent talent to Disney and achieved multiple successes, is experiencing a worker exodus that reminds Hollywood of the 2024 layoffs. Many of the roles are from the creative department, including 23 technical directors and nine story artists. Aside from the mentioned Project One Disney, there are other motives behind D’Amaro’s decision to press the firing brigade forward?
The Disney CEO told outlets that it is due to the fast-moving environments across multiple industries: “[…] This requires us to constantly assess how to foster a more agile and technologically enabled workforce to meet tomorrow’s needs.” And his words are sparking concerns about bringing AI integration to Disney.
And the option is available for newly hired and experienced Pixar employees for the better. In late May, animation studio Nura launched Showcraft, an animation platform that promotes the proper use of assisted AI tools. Unlike previous generative AI software, Showcraft does not rely on prompt training.
However, D’Amaro’s focus on his all-in-one platform does not justify the layoffs. Those who received the layoff notice from the WARN coordinator were met with Mrs. Incredible replacing the ‘I’ in Pixar. The studio will start to terminate selected employees on Sept. 26.
Pixar Originals Box Office Sales May Say More
It’s such a shame for a film studio like Pixar to be subjected to Disney’s corporate sweep. One clear answer is related to the low earnings of original films. Hoppers is the studio’s latest animated original feature, praised by both critics and movie-goers. While it had a strong opening weekend at $88 million internationally, the acclaimed film did not reach its expected $500 million in later months.
Hoppers followed the curse of its underperforming predecessors. Originals, such as Elementals and Elio, have failed to earn profits and cover their production costs with Disney. Pixar sequels, whether they are good or bad, have become the go-to option for Disney. Toy Story 5 is one of the highest-grossing animated sequels, earning nearly $1 billion at its theatrical debut.
And box office analysts have recognized a similar pattern with Inside Out 2. Not only does it successfully continue Riley’s story when she enters high school, it also became a financial smash. From opening weekend to later months, the film successfully earned $1.6 billion.
How Are Other Disney Partners Being Treated?
The planned Pixar firings are just the gateway for what is coming under D’Amaro’s ‘One Disney’ blueprint. After the July 21 announcements, more information has been uncovered on the affected partners. ESPN is undergoing company restructure after Disney negotiated with the NFL. The February deal has stirred the pot within the network’s operations.
“[…] We had to make the most difficult decisions about the job impacts,” said ESPN Chairman Jimmy Pitaro. “While most of the jobs are tied to the [NFL] acquisition, we will also notify other colleagues in other parts of the company that their positions are impacted. We are committed to treating employees with compassion and respect and providing support as they navigate this transition.”
Nat Geo’s Charlie Parsons departed from the network the following day. The supervising vice president and his colleagues were dismissed from the division as part of the 1,000-worker exodus. Creators are speaking out against D’Amaro’s plan as more of the layoffs are being tracked.
