Pixar and other Disney divisions experienced significant employee reductions affecting production, operations, and other teams. The animation studio eliminated between 100 and 150 positions, marking the most substantial reduction since May 2024 when approximately 175 staff members were laid off. These cuts primarily targeted non-executive personnel involved in project development and execution rather than senior leadership.

The reductions are being attributed to disappointing theatrical performance of the film Hoppers, which despite earning positive critical reviews generated approximately $390 million in global box office revenue—falling short of company expectations. Pixar's struggles reflect a broader pattern where original productions underperform relative to franchise sequels like Toy Story 5, which achieved nearly $1 billion. Industry observers note that releasing Pixar films exclusively on Disney's streaming service during the pandemic may have conditioned audiences to consume the studio's content at home rather than in theatres.