Walt Disney's Pixar Animation Studios decided to cut 75 positions, including two executives connected to the box office underperformance of Lightyear. This marks the first notable round of job cuts at the studio in the past ten years.

As reported by Reuters, the reduction in positions involved notable figures such as Angus MacLane, the director of Lightyear, who had a 26-year tenure as an animator and was part of the esteemed senior creative team responsible for renowned films like Toy Story 4 and Coco.

Additionally, Galyn Susman, the producer of Lightyear, has also departed. Susman had been associated with Pixar since the release of the original Toy Story film in 1995. The sources further disclosed that Michael Agulnek, who had been serving as Pixar's vice president of worldwide publicity since 2015, was also among those laid off. 

On May 23, the job cuts were implemented as part of a larger plan previously announced by Walt Disney's Chief Executive Bob Iger. This plan aims to eliminate 7,000 jobs and reduce costs by $5.5 billion. As part of the restructuring, the film and television groups were consolidated into a unified Disney Entertainment unit, resulting in the elimination of a distribution division.

Although the number of layoffs is relatively small in comparison to Pixar's workforce of approximately 1,200 employees, they hold significance due to the studio's influential role in creating franchises and characters that contribute significantly to Disney's overall revenue.

Renowned for its cinematic franchises such as Toy Story, The Incredibles, and Cars, Pixar has established a strong reputation. However, Lightyear, which had a reported budget of $200 million and was released a year ago, achieved relatively modest worldwide ticket sales of $226.7 million and received mixed reviews from critics.

In contrast, Pixar's Incredibles 2 released in 2018, with a reported similar production budget, achieved remarkable worldwide box office sales of $1.2 billion. The box office performance of Lightyear was impacted by its inability to be shown in 14 Middle Eastern and Asian countries due to the portrayal of a same-sex relationship.

Disney has implemented layoffs across all divisions, including film and television, streaming services, and theme parks. The last time Pixar underwent job cuts was in 2013, following the postponement of the 2015 film The Good Dinosaur and the removal of its director, Bob Peterson. Approximately 30 positions were eliminated. Disney acquired Pixar in 2006 with the aim of revitalising its struggling Disney Animation division.