The Walt Disney Company has initiated its third major round of layoffs this year, impacting approximately 150 employees across divisions including Pixar, ESPN, and Disney Entertainment Television. According to The Wrap and The Hollywood Reporter, these cuts reflect a broader corporate strategy to streamline operations under CEO Josh D’Amaro, marking a shift toward a more constrained production model.
Pixar’s Shift to a “Long and Lean” Production Model
Pixar is facing significant staff reductions, even as the studio maintains a strong commercial performance. The studio has grossed over $1.4 billion at the box office this year, bolstered by the success of Hoppers and Toy Story 5, which has earned $958 million globally. Despite these figures, a verified source at the studio confirmed that management has transitioned to a “long and lean” production schedule.
Internal shifts are quantified by a reduction in labor hours. According to a longtime employee, the new production model limits future films to 16,500 person-weeks of labor. This represents a notable decrease from previous standards, which ranged between 18,500 and 20,000 person-weeks per production.
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The current round of layoffs is slightly smaller than the 175 positions cut in 2023, which was previously recorded as the largest reduction in Pixar’s history.
Restructuring Under the “One Disney” Initiative
The latest job losses are part of a wider restructuring effort aimed at creating what CEO Josh D’Amaro described as a “more agile and technologically-enabled workforce.” Since the inception of the “One Disney” model, the company has undergone several phases of consolidation. In January, Disney unified its marketing departments under Asad Ayaz, a move that resulted in immediate personnel cuts.
Following that, the company eliminated approximately 1,000 positions in April. While the most recent reductions are smaller in scale than those seen in the spring, they continue the trend of corporate downsizing across film studios and corporate functions. As of this week, there has been no evidence of a companywide memo from the CEO addressing the specific nature of these latest cuts.
Industry Trends and Operational Efficiency
Frequently Asked Questions
How many people were affected by the recent Disney layoffs?
According to The Wrap, the layoffs impacted roughly 150 staff members.
Which departments were most affected by these cuts?
The cuts primarily targeted corporate functions, ESPN, Disney Entertainment Television, and the company’s film studios, with Pixar facing the largest reductions within the film division.
What is the “One Disney” model?
It is a restructuring strategy implemented by CEO Josh D’Amaro intended to streamline operations and create a more agile, technologically-enabled workforce across the company’s various divisions.
Why is Pixar reducing its person-weeks of labor?
Internal sources indicate the studio has adopted a “long and lean” production schedule, which caps labor hours per film to increase efficiency and manage production costs.
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