The Walt Disney Company has announced another sweeping round of layoffs, marking its third major workforce reduction of the year and sending shockwaves through Hollywood.

The latest cuts span Disney Entertainment Television, ESPN, corporate divisions, and Disney Studios, with Pixar once again bearing the brunt of the losses.

According to SFist, several hundred employees were let go Tuesday as part of the restructuring effort.

The company characterized the move as an operational decision aimed at keeping pace with a rapidly changing entertainment industry.

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Pixar’s Emeryville animation hub took the most severe blow within the film division.

Although Disney did not confirm the exact number affected, a source told TheWrap that approximately 116 employees from the studio were laid off.

These departures were concentrated in the production and operations departments.

A Disney spokesperson described the cuts as a strategic effort to "manage resources and reinvest across the company" amid ongoing industry evolution.

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The statement emphasized that the changes were not tied to the performance of any individual film.

The announcement arrived despite Pixar’s recent triumph at the box office.

“Toy Story 5,” which opened on June 19, drew an estimated $312 million globally during its debut weekend.

That haul included a franchise-best $160 million domestic opening, underscoring the brand’s enduring popularity.

Even so, Pixar’s newer original releases have struggled to match the commercial success of its flagship franchises.

“Elio” registered the weakest opening weekend in the studio’s history, while “Hoppers” marked an improved outcome but still fell short of the blockbuster benchmarks set by series such as “Toy Story” and “The Incredibles.”

Pixar’s workforce has been shrinking steadily over the past two years.

In 2024, the studio eliminated about 175 positions,roughly 14% of its staff, following a prior reduction of 75 jobs as Disney shifted focus away from streaming-first strategies.

Earlier in April, Disney cut around 1,000 more roles across its marketing, technology, corporate, and studio divisions.

Those layoffs were presented as a way to make the company “more agile and better equipped for how the entertainment business is changing,” according to CEO Josh D’Amaro’s message to employees.

Reports indicate that the latest layoffs also struck National Geographic, which has been part of Disney’s media portfolio since the company’s large-scale acquisitions in previous years.

The job losses at ESPN primarily involved behind-the-scenes roles related to the integration of the NFL Network.

Employees reportedly received notice of the cuts Tuesday morning.

As of late 2025, the company employed around 230,000 people worldwide, highlighting how the reductions represent only a small but symbolically significant fraction of its global workforce.

Despite the turbulence, Pixar remains active on several new film projects.

The studio’s upcoming titles include “Gatto,” an original feature directed by “Luca” filmmaker Enrico Casarosa, and “Incredibles 3,” continuing one of its most successful franchises.

Disney’s restructuring shows no sign of slowing as the company refines its strategies amid evolving viewing trends, increased competition, and shifting demands between theatrical releases and streaming.

The company maintains that each wave of change is designed to position it for future growth, even as employees and industry observers react to another painful round of cuts.