Between the competition of animation and entertainment, Pixar Animation Studios, a subsidiary of Walt Disney, has announced a significant workforce reduction. The company is laying off approximately 14% of its employees, equating to around 175 individuals. This decision is part of a broader strategy implemented by Disney’s CEO, Bob Iger, to prioritize content quality over quantity.

The layoffs at Pixar are a reflection of the company’s strategic shift towards focusing on theatrical releases, moving away from short-form series for Disney+. This decision comes amidst a challenging time for the animation industry, with the pandemic having significantly impacted production schedules and content decisions.

Despite these challenges, Disney has been striving to navigate through the crisis by diversifying its content offerings. However, the company has found it difficult to resonate with audiences through its animated features. The shift in consumer behavior towards streaming platforms during the pandemic has further complicated Disney’s position.

The layoffs at Pixar are part of a larger plan by Disney to cut more than 7,000 jobs and trim $7.5 billion in annual expenditures. This strategic realignment is becoming more commonplace among large-cap companies across many sectors that may have added employees too aggressively following the pandemic.

In the face of these challenges, Disney is refocusing its efforts on creating high-quality content that resonates with its audience. With Iger back at the helm, Pixar will refocus on theatrical releases and move away from short-form series for Disney+.