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A billion-dollar box office run apparently wasn’t enough to protect Pixar from Disney’s latest round of cuts.

It has already been a major year for The Walt Disney Company, but another significant change is now unfolding behind the scenes. Disney reportedly laid off several hundred employees across multiple divisions, with Pixar Animation Studios taking the largest share of the cuts — even as its newest movie races toward an enormous global box office milestone. Here is everything we know about the latest Disney layoffs, the departments affected, and why this round is getting so much attention.

The Walt Disney Company began notifying several hundred employees of layoffs on Tuesday morning, affecting teams across its entertainment, studio, television, and sports operations.

According to Fox Business, Pixar Animation Studios absorbed the largest portion of this latest round of Disney job cuts. Disney Entertainment Television, Disney Studios, ESPN, National Geographic, and certain corporate departments were also affected.

The layoffs represent Disney’s third major round of workforce reductions in 2026 as the company continues restructuring its operations under CEO Josh D’Amaro.

Pixar Takes the Biggest Hit

At least 116 employees were reportedly laid off from Pixar’s headquarters in Emeryville, California, according to TheWrap sources cited by Fox Business. A separate report from the Los Angeles Times stated that Pixar is eliminating less than 10% of its workforce, with most of the affected positions concentrated in production and operations.

The cuts reportedly reflect Pixar’s changing production needs, including the number and types of projects currently moving through the animation studio.

This is Pixar’s largest round of layoffs since 2024. During that earlier restructuring, approximately 175 Pixar employees (or around 14% of the studio’s workforce) lost their jobs as Disney reduced its development of original streaming series and shifted Pixar’s focus back toward feature films and theatrical releases.

The Layoffs Come as Toy Story 5 Approaches $1 Billion

The timing of the Pixar layoffs is especially surprising because the studio is currently celebrating a massive box office performance from Toy Story 5.

The newest installment in the “Toy Story” franchise had earned approximately $957 million to $962 million worldwide at the time of the reports, placing the film on track to cross the coveted $1 billion global box office mark.

That success follows Pixar’s record-breaking performance with Inside Out 2, which earned approximately $1.69 billion globally in 2024 and became the highest-grossing animated movie of all time at the time of its theatrical run.

In other words, Pixar is facing significant workforce reductions while two of its biggest franchises have delivered blockbuster results in a relatively short period.

Did Hoppers Contribute to the Pixar Layoffs?

Fox Business reported that sources speaking with TheWrap suggested the performance of Pixar’s original 2026 movie Hoppers may have contributed to the studio’s latest cuts. According to that report, the movie reportedly finished slightly below its break-even point under Hollywood accounting standards.

However, another report characterized the movie’s performance more positively. The Los Angeles Times described Hoppers as critically acclaimed and said it had a solid showing at the box office after debuting in March.

Disney has not publicly stated that the performance of “Hoppers” caused the layoffs, so any connection between the movie and the workforce reductions remains based on unnamed-source reporting rather than an official explanation from the company.

Pixar Is Still Recovering From Elio’s Box Office Struggles

Pixar also experienced a significant theatrical disappointment with Elio in 2025.

The original animated movie earned approximately $154 million worldwide against a reported production budget of $200 million. That made Elio Pixar’s lowest-grossing movie since Onward, whose theatrical run was disrupted by the COVID-19 pandemic in 2020.

Disney’s studios have spent the last several years reducing the number of projects they produce, prioritizing quality over volume, and placing greater emphasis on theatrical movies. Disney views successful theatrical releases as important drivers for the company’s broader ecosystem, including merchandise, streaming, and other entertainment businesses.

National Geographic Employees Were Also Affected

National Geographic was reportedly one of the Disney brands hit hardest outside of Pixar.

Dozens of National Geographic employees received layoff notices across its television, editorial, and digital operations. Some affected employees may have opportunities to move into other roles within the company, according to sources cited by the Los Angeles Times.

The reductions arrive as Disney continues adjusting its traditional television and media businesses in response to changing audience habits and the ongoing decline of linear television.

ESPN Cuts Several Well-Known Personalities

ESPN was also affected by Disney’s latest round of layoffs, including several recognizable on-air personalities.

Among the reported departures was Karl Ravech, a longtime SportsCenter anchor and Baseball Tonight host who had worked with ESPN since 1993. Former NFL player and longtime ESPN football analyst Ryan Clark was also named among the affected personalities.

The Los Angeles Times reported that most of ESPN’s cuts were connected to the company’s integration of assets acquired from NFL Network.

In a memo to employees, ESPN Chairman Jimmy Pitaro said the network had spent several months evaluating its combined teams, resources, and organizational structure following the integration of the NFL assets.

Pitaro explained that the review resulted in difficult decisions involving job impacts as ESPN worked to position the organization for the future.

This Is Disney’s Third Round of Layoffs in 2026

The latest job cuts are not an isolated event.

Disney consolidated its marketing departments under Chief Brand Officer Asad Ayaz in January, a move that reportedly resulted in additional reductions within those teams.

In April, Disney announced that approximately 1,000 positions would be eliminated across several areas of the company, including:

• Disney’s marketing organization
• Film and television studios
• ESPN
• Product and technology teams
• Certain corporate departments

Those cuts were announced shortly after Josh D’Amaro became Disney’s chief executive officer.

At the time, D’Amaro told employees that the rapidly changing entertainment industry required Disney to continually assess how it could build a more agile and technologically enabled workforce. He said that evaluation would result in roles being eliminated in certain areas of the company.

Pixar was not included in Disney’s April layoffs, making this latest round the animation studio’s first significant workforce reduction since 2024.

Disney Continues Restructuring Its Entertainment Business

Disney is not the only entertainment company reducing its workforce as Hollywood responds to declining traditional television revenue, unpredictable theatrical performance, growing streaming competition, and rapidly changing technology.

Still, the latest Disney layoffs are particularly notable because of Pixar’s current box office success. Toy Story 5 is approaching $1 billion worldwide, while Inside Out 2 recently delivered one of the biggest animated releases in history.

The situation highlights an uncomfortable reality: even enormous franchise success does not necessarily shield individual departments or employees from broader corporate restructuring.

Disney has not indicated that these cuts will affect Pixar’s announced film slate or the release of future projects. The company appears to be continuing its strategy of producing fewer projects while putting more resources behind major theatrical releases with the potential to support Disney’s streaming, consumer products, theme park, and franchise businesses.

We will continue watching for additional information about the Disney layoffs, Pixar’s upcoming projects, and any further changes across Disney Entertainment, ESPN, and National Geographic. Be sure to check back with Theme Park Scope for the latest Disney news, entertainment updates, movie announcements, and changes happening throughout The Walt Disney Company.