Disney announced a new round of layoffs this week, with several hundred positions cut across multiple divisions, including Pixar and National Geographic. The move comes as the company continues to adjust its business strategy amid shifting market pressures and changes in the entertainment industry.

According to reports from The Wrap, Pixar will lose about 150 employees. This follows a previous reduction of roughly 125 jobs in May 2025, marking another significant contraction for the once fast-growing animation studio behind hits like Toy Story and Inside Out.

Layoffs also hit Disney Entertainment Television, where just under 100 roles were eliminated. Most of those cuts affected National Geographic operations, including both the cable network and editorial teams. Around a dozen staff members at ABC News were also impacted, along with smaller reductions across other divisions.

At ESPN, additional job cuts were tied to ongoing restructuring linked to its partnership with the NFL. Disney has not released a total company-wide figure, but the cumulative reductions point to a broader effort to streamline operations.

The layoffs arrive as Disney faces financial pressure. The company’s stock has declined over the past year, reflecting investor concerns about profitability and the long-term performance of its streaming and studio businesses.

Industry analysts say another factor may be the rapid rise of artificial intelligence in media production. Animation studios like Pixar rely heavily on computer-generated imagery, an area where AI tools are advancing quickly. These tools can reduce production time and costs by automating parts of the creative process that once required large teams.

AI is also expected to reshape other parts of filmmaking, including background design, visual effects, and even voice work. Some experts believe studios may increasingly rely on digital tools to replicate voices and performances, raising new questions about the future role of actors in long-running franchises like Toy Story.

Disney has not publicly tied the layoffs directly to AI adoption, but the timing has fueled speculation about how emerging technology could reshape the entertainment workforce.

Despite the cuts, Pixar still employs thousands of workers, and Disney remains one of the largest media companies in the world. For now, the company appears focused on tightening its operations while preparing for a rapidly changing industry.

***