Disney Cuts Hundreds of Jobs as Pixar, National Geographic Absorb Deepest Losses

Pixar is celebrating one of its biggest box-office successes in years, yet the studio is simultaneously shrinking its workforce with layoffs affecting hundreds of employees. Despite 'Toy Story 5' approaching the £718 million ($958 million) mark at the global box office, Disney has eliminated hundreds of positions at the animation studio as part of another company-wide restructuring.

The latest redundancies represent Disney's third round of layoffs this year and extend a broader effort to streamline operations under the company's 'One Disney' strategy. While several divisions have been affected, executives have targeted Pixar and National Geographic in the latest cuts as they continue reshaping the entertainment giant amid changing audience habits and financial pressures.

Why Pixar Is Cutting Jobs Despite Toy Story 5's Box Office Success

Dozens of employees are being laid off at Pixar's Emeryville, California, headquarters, representing a high single-digit percentage of the studio's workforce of roughly 1,100 to 1,200 staff. The reductions are concentrated primarily in production and operational roles.

The move comes as 'Toy Story 5' continues to perform strongly in cinemas, grossing around £718 million ($958 million) worldwide. However, the layoffs come after weaker commercial performance from Pixar's original films, including 'Hoppers' and 'Elio'.

'Hoppers' earned around £292 million ($389.5 million) globally against a production budget of approximately £112 million ($150 million).

Industry analysts generally note that studios typically need to earn considerably more than a film's production budget at the global box office to break even after marketing and exhibitors' shares are taken into account.

The restructuring also reflects Pixar's evolving strategy, with the studio placing greater emphasis on theatrical releases and established franchises while prioritising 'quality over volume' in future productions.

ESPN and National Geographic Face Deep Cuts as Disney Restructures

Pixar was not the only division affected by the latest restructuring. National Geographic experienced some of the deepest reductions, with editorial and operational teams across its cable, print and digital businesses facing significant job losses. Within Disney Entertainment Television, just under 100 positions were eliminated across the division.

ESPN also faced cuts, with several on-air reporters and analysts departing as the sports network continues adjusting its business following its landmark NFL rights agreement, which included the league receiving a 10% ownership stake in ESPN.

'Over the past several months, we've made significant progress integrating the NFL assets that we acquired into ESPN. Throughout this process, we have taken the time to carefully evaluate our collective teams, resources and organizational structure to best position us for the future. As a result, we had to make some difficult decisions about job impacts that we will be communicating today,' ESPN chairman Jimmy Pitaro told staff in a memo Tuesday morning.

'While most of the job impacts are tied to the acquisition, we will also notify colleagues in other parts of the company today that their positions have been impacted. We are committed to treating employees with compassion and respect and to providing support as they navigate this transition.'

Disney's Third Round Of 2026 Layoffs Continues 'One Disney' Restructuring

The latest redundancies follow another major restructuring announced in April, when Disney cut approximately 1,000 jobs across its film, television, ESPN, technology and consumer products divisions.

The workforce reductions form part of the company's broader 'One Disney' initiative. The restructuring aims to create a more efficient and agile organisation by simplifying operations and reallocating resources across the business.

This is also not Pixar's first significant workforce reduction. The studio eliminated 175 jobs in 2024 after scaling back its Disney+ original programming, while a further 75 positions were cut in 2023 following the disappointing box-office performance of 'Lightyear.'

The latest round continues a pattern in which periods of underperformance for original animated films have been followed by staffing reductions, even as Disney's established franchises continue to generate substantial box-office returns. Disney has not confirmed whether any senior creative executives were affected, and no public response had yet been issued by employee representatives.

The cuts at Disney reflect a wider trend of media and tech companies streamlining operations amid shifting consumer habits and economic pressures.