Though they knew they were coming, it doesn't make it any easier at Pixar with layoffs underway.

THR reported that this is the most significant restructuring in the company's history, with roughly 14 percent of the workforce being laid off. It's all part of Disney's cost-cutting measures, spreading far and wide.

This means about 175 employees will be fired at Pixar. It's a rough day at the company that brought Toy Story, Cars, Inside Out, and other classic animated films to life.

Why there are layoffs at Pixar

The main reason is that Bob Iger, Disney's CEO, wants to focus on quality over quantity. Before this, ex-CEO Bob Chapek was more geared toward cranking out a lot of content for streaming. Pixar will now be set on feature films.

Employees knew this unfortunate event was coming since January. On a brighter note, it was initially thought to affect 20 percent of the workforce, but it landed at 15 instead.

It's not only Pixar that is experiencing difficult layoffs. Disney cut employees across the board. Pixar's layoffs were delayed a bit due to production schedules.

A memo from Pixar President Jim Morris to staff reads:

Hello everyone, 

I have spoken to you many times over the last year about our pending move away from series production for Disney+, the return to our focus on feature films, and the reduction in our team that would accompany that. That day is here, and while it is not coming as a surprise to anyone, it is one of the hardest changes we've had to make, as it means we will be parting with a number of talented and dedicated colleagues and friends.

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Today, leaders will begin the process of notifying employees whose positions are being impacted. Calendar invites to speak with a leader have already gone out to those individuals, and we anticipate we will have connected with everyone impacted by the end of the day.

I want to assure you that will be providing extensive support as our colleagues start to transition out of the studio. We are committed to ensuring that their departure is handled with the utmost respect and care at every stage. This is important to me, and I understand how important this is to all of us in the Pixar community. I will host a brief Studio Meeting via Zoom this afternoon at 5:00 to talk more about today's announcement.

Despite the challenges in our industry over the past few years, you have all consistently shown up to contribute, collaborate, innovate, lead, and do great work at this studio. I give you my deepest thanks, and for those who will be leaving us, I am hopeful that our paths will cross again, both professionally and personally.

Jim

Pixar was hit hard during the pandemic. Part of it was when the films Luca, Soul, and Turning Red went right to Disney+ instead of theaters. Also, the movie Lightyear wasn't a hit. That said, Elemental earned nearly $500M globally last year and did well on streaming.

Now, hopes are high for Inside Out 2, which opens on June 14 in the U.S. Beyond that, the movies Elio and Toy Story 5 are on their way to the big screens next year and in 2026.

It would be great to see Pixar rebound sooner rather than later. They're a valuable asset to the animation industry, and hopefully, the future is bright for them.