Disney's Pixar Cuts 14% Staff, Shifts Focus to Potential Blockbuster 'Inside Out 2'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2024
0mins
Source: Benzinga
- Pixar Layoffs: Pixar Animation Studios, owned by Walt Disney Co, has laid off around 175 employees, which is about 14% of its workforce.
- Reason for Layoffs: The layoffs are due to Disney+ reducing its production of direct-to-consumer series, following CEO Bob Iger's push for a more disciplined streaming approach.
- Challenges Faced: Pixar has faced challenges in producing successful hits across all demographics since COVID-19, with three films going straight to streaming.
- Focus on "Inside Out 2" Release: Pixar is now focusing on the release of "Inside Out 2," directed by Kelsey Mann, expected to be a major box office success during Father’s Day weekend.
- Financial Performance: Disney reported a 1% revenue growth year-on-year, slightly missing analyst estimates, but beating EPS estimates.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 102.380
Low
123.00
Averages
137.29
High
152.00
Current: 102.380
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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