Charles Cram, a World War II veteran who witnessed the iconic flag raising at Iwo Jima, was recognized at Disneyland’s Flag Retreat ceremony. (Disney Experiences)
Disney announced a series of workforce reductions affecting multiple divisions, with Pixar absorbing the majority of the cuts.
According to TheWrap, at least 116 employees were laid off at Pixar’s Emeryville, California headquarters. Other divisions impacted included Disney Entertainment Television, Disney Studios, and ESPN.
Despite these measures, Pixar’s newly released “Toy Story 5” dominated global box office earnings, grossing approximately $962 million worldwide and positioning the film to exceed $1 billion.
The layoffs represent Pixar’s largest round of job reductions in the past two years, even as “Inside Out 2” became the highest-grossing animated film of all time in 2024 with $1.69 billion in worldwide revenue.
In Disney Entertainment, National Geographic is reported to be among the most significantly impacted brands, according to the source.
Toy Story characters Jessie, Woody, and Buzz Lightyear posed at a red carpet launch event for “Toy Story 5” in London on May 28, 2026. (Henry Nicholls / AFP / Getty Images)
ESPN also announced layoffs of several high-profile on-air personalities, including Karl Ravech, a longtime SportsCenter anchor and Baseball Tonight host who joined the network in 1993, as reported by The Hollywood Reporter. Ryan Clark, a former NFL player and ESPN football analyst for over a decade, was also affected.
ESPN Chairman Jimmy Pitaro communicated the decision via internal memo, stating that the organization conducted an extensive evaluation of its teams and structure to better prepare for future challenges.
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Characters from Disney and Pixar’s “Inside Out 2” are displayed during the film’s world premiere at the El Capitan Theatre in Hollywood on June 10, 2024. (Photo by Alberto E. Rodriguez/Getty Images for Disney/Pixar / Getty Images)
The restructuring may have been influenced by the underperformance of Pixar’s “Hopper,” which reportedly barely broke even under Hollywood accounting standards.
Josh D’Amaro, then-chairman of Disney Experiences for The Walt Disney Co., spoke at the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, US, on July 10, 2025. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Pixar’s “Elio,” released in 2025, earned $154 million globally on a $200 million budget, marking the studio’s lowest-grossing film since “Onward” during the COVID-19 pandemic.
This marks the third wave of layoffs Disney has undergone this year. In April, the company reduced its workforce by approximately 1,000 employees across television and film divisions under new CEO Josh D’Amaro, citing the need to streamline operations amid rapid industry changes. Earlier in January, marketing departments were consolidated under Chief Brand Officer Asad Ayaz, triggering additional job cuts in those areas.
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