The box office success of "Toy Story 5" apparently wasn't enough to save Disney Pixar employees from mass layoffs. Disney is poised to terminate hundreds of Pixar employees as part of a larger set of layoffs that includes ESPN, Disney Entertainment Television, and Disney Studios.
Disney is laying off several hundred people across the entire company.
— DiscussingFilm (@DiscussingFilm) July 21, 2026
The majority of the layoffs on the studios side is at Pixar.
(Source: https://t.co/Mi9s1xnM0b) pic.twitter.com/cwp28luxzo
ESPN firings, tied to the network's acquisition of NFL Network, are already making headlines—among the affected are former NFL MVP Cam Newton and Ryan Clark, former cohost of ESPN's GetUp!, First Take, and a prominent figure on SportsCenter.
Another round off layoffs hit ESPN today. Some of the biggest names effected include:
— Morning Brew ☕️ (@MorningBrew) July 21, 2026
Cam Newton
Ryan Clark
Karl Ravech
Tom Pellissero
Stephania Bell
David Lloyd pic.twitter.com/w7o6eCt6ZL
While those names add shock value, a Disney spokesperson said the majority of layoffs are taking place within Pixar and National Geographic. Acquired by Disney in 2006, Pixar has grossed over $17 billion globally and employed more than 1,200 individuals before the firings that were announced Tuesday morning. National Geographic will see large cuts to its editorial and operations team, while the Pixar cuts are focused within production and operations.
Variety reported that Pixar's cuts reflect the evolution of its production strategy, which prioritizes quality over volume, and a return to theatrical film debuts as opposed to streaming. Pixar has struggled to create original films—this past spring, Disney released "Hoppers," which significantly underperformed at the box office. However, sequels like "Inside Out 2" and the aforementioned "Toy Story 5" still dominate the box office, with "Toy Story 5" nearing a milestone $1 billion gross. Several original films were released directly to streaming following COVID, which executives said made it harder to bring audiences into the theater.
The firings are part of the company's third round of layoffs, following April's termination of nearly 1,000 employees in an effort to "streamline operations," said new Disney CEO Josh D’Amaro. D'Amaro implemented a series of changes when he took over in March to accommodate the acquisition of massive sports networks, while also shifting away from a streaming-only model. Disney has come under fire in recent years for pandering to woke ideology, including a 2024 shareholder letter accusing the company of harming its own brand with 'anti-police and anti-white content'. The layoffs come as the company continues to navigate that criticism, as well as the changing entertainment landscape and Disney's diverse offerings.
