Pixar reportedly laid off about 14% of its staff on Tuesday as the animation studio owned by Disney attempts to reorganize to focus on films.
Approximately 175 employees were let go. Pixar president Jim Morris send a memo to staff that all of the affected employees would be notified by the end of the day, Variety reported.
It is the second round of cuts in less than a year. 75 people were laid off last June.
Analysts have cited Disney's decision to bypass theaters and release animated features directly to Disney+ during the pandemic as a major factor that has caused Pixar to struggle.
Movies released in theaters in the past few years have delivered disappointing results, including the "Toy Story" spin-off "Lightyear" which cost $200 million to produce.
Pixar will stop making original shows for Disney+ as part of the restructuring, the New York Times reported.
Bob Iger, who returned as Disney CEO in 2022 has made broad cuts across multiple divisions as he works towards cutting costs.
Pixar has been producing shows to help support the Disney+ streaming service. Iger has pushed the company to make less original content for the service, CNBC reported.
The studio's next film will be "Inside Out 2." It is scheduled for release on June 14. The original movie in 2015 was a runaway success for Pixar.
