Disney is cutting staff across Pixar, ESPN, National Geographic and other units in its third major round of layoffs this year, a move that follows a string of strategic changes and public criticism about the company’s direction.
Despite “Toy Story 5” doing strong business, Disney is preparing to dismiss hundreds of Pixar employees as part of broader cuts that also touch ESPN, Disney Entertainment Television, and Disney Studios. The move underscores a company rethinking how it allocates resources across theatrical releases, streaming, and live sports. Workers in production and operations are reportedly the hardest hit at Pixar, while National Geographic faces layoffs in editorial and operations.
ESPN’s shakeup has already made headlines because familiar names are affected, including former NFL MVP Cam Newton and Ryan Clark, a former cohost of GetUp!, First Take, and a prominent presence on SportsCenter. Those departures add immediate visibility to the downsizing and signal how the network is reshaping itself after big changes in its sports portfolio. The ESPN cuts are tied to the network’s acquisition of NFL Network and the reorganizations that follow.
https://x.com/DiscussingFilm/status/2079596176735601037
A Disney spokesperson said most of the job reductions are concentrated at Pixar and National Geographic, with Pixar having employed more than 1,200 people before the Tuesday announcement. Pixar, acquired by Disney in 2006, has generated over $17 billion globally but is now trimming staff as leadership shifts priorities. The company says the cuts are concentrated in roles that no longer fit its evolving production model.
Industry observers note that Pixar’s strategy is moving toward fewer releases with higher theatrical ambition, reversing the pandemic-era tilt toward streaming. Recent original titles have struggled to find big audiences, as seen with “Hoppers,” while sequels such as “Inside Out 2” and “Toy Story 5” continue to dominate ticket sales. “Toy Story 5” is approaching a $1 billion global gross, which highlights how reliable franchises still drive box office returns even as originals face an uphill climb.
The current round is the third wave of layoffs for Disney this year and follows a massive April cut that removed nearly 1,000 employees in an effort to “streamline operations,” said new Disney CEO Josh D’Amaro. D’Amaro has been adjusting the company since taking over in March, juggling the integration of major sports networks and moving away from a streaming-only distribution mindset. Those strategic shifts are intended to refocus on theatrical premieres and to better align content budgets with audience demand.
Critics on the right argue these moves reflect broader management problems and the fallout from cultural choices that alienated parts of Disney’s audience. The company has drawn fire for what opponents call pandering to woke ideology, and a 2024 shareholder letter accused the company of harming its own brand with ‘anti-police and anti-white content’. That criticism has become part of the conversation about whether creative decisions and corporate priorities contributed to the need for cost-cutting.
Executives say the changes are about efficiency and long-term health: fewer, higher-profile releases and clearer priorities for sport and streaming businesses. For employees, though, the result is immediate and painful job loss across multiple divisions in a company that for years seemed insulated from tough marketplace realities. The pattern of layoffs raises questions about how media giants balance franchise-driven box office success with the risk and cost of developing original projects.
Editor’s Note: Hollywood, academia, and liberal elites are out of touch with the average American.
