Disney announces third round of layoffs, with Pixar among hardest hit divisions

Disney confirmed a new round of layoffs on Tuesday, marking the third set of reductions this year that affect Disney Entertainment Television, ESPN, corporate divisions and Disney Studios. The cuts hit Pixar's Emeryville studio hardest, with a source telling TheWrap that about 116 Pixar employees were let go, primarily in production and operations roles tied to the studio's current project slate.

"These changes are part of our continual evaluation of how we manage resources and reinvest across the company as our industry continues to evolve," a Disney spokesperson said.

The layoffs come after "Toy Story 5" opened to a strong box-office performance, earning roughly $312 million worldwide in its first weekend, including a franchise-record $160 million domestically. However, recent original Pixar releases have shown mixed results, with "Elio" posting the weakest opening in the studio's history and "Hoppers" receiving better reviews but still lagging behind the studio's flagship franchises.

Pixar has faced multiple reductions this year, previously cutting about 175 staff members, roughly 14 % of its workforce, after a 75-person cut the prior year as Disney shifted focus from streaming to theatrical releases. In April, Disney announced roughly 1,000 additional cuts across marketing, television, ESPN, technology, studio operations and corporate teams.

"We’re building a company that’s more agile and better equipped for how the entertainment business is changing," Disney CEO Josh D’Amaro told employees.

The latest round also impacted National Geographic and behind-the-scenes ESPN roles linked to the NFL Network integration. Employees were notified on Tuesday morning. Disney's global workforce stands at about 230,000 employees as of late 2025, and Pixar's upcoming projects include the original feature "Gatto" by Enrico Casarosa and "Incredibles 3."