Today Reuters broke the news that Disney has cut 75 jobs at Pixar. This is the first significant job cuts at Pixar in a decade. The cuts include several executives behind the “Lightyear” film. In total, Pixar has about 1,200 employees.
This all comes as Disney is right in the middle of cutting thousands of jobs from all areas of the company.
In total, once all cuts are made, Disney plans to cut about 7,000 jobs. This is reportedly being done by both not filling empty jobs and laying off as many as 5,000 employees.
Disney already reportedly started some cuts earlier this year. We have seen cuts at ESPN, Disney film studios, parks, and even its streaming services like Hulu.
Recently Disney CEO Bob Iger included in the memo to all employees, “In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future.” This comes as he is busy cutting costs in all areas of the company.
Disney reportedly plans to cut about $5.5 billion in costs over the next few years. Job cuts are only a part of these cost-cutting efforts. With these cuts, $2.5 billion will be cut from operational costs, and $3 billion will come from cutting back on spending for non-sports content.
Disney also recently announced plans to cut costs by reducing the amount of content on its streaming services. Hulu has already shut down a research center in China as an example of one of the cuts. According to Deadline Hulu could see major staff cuts as part of Disney’s efforts to cut staffing company-wide by 7,000 employees. For now, though layoffs at Hulu have not been major to this point.
ESPN, like other cable networks, is facing the fact that fewer Americans are paying for live TV. This is affecting their ability to rely heavily on subscriptions for nonsports fans to offset their high costs.