Media and entertainment giant The Walt Disney Company’s (NYSE:DIS) Pixar animation studios could slash jobs this year. This comes after it has finished production on some shows and has ended up with more staff than needed. Pixar is behind some of Disney’s most popular franchises, including Toy Story and Finding Nemo.
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According to another report by TechCrunch, Pixar could see 20% of its staff laid off, with its studio employees of 1,300 reduced to less than 1,000 over the coming months. However, Reuters spoke to an unnamed source who disputed this number and stated that the layoffs were not “imminent” and the studio had not yet determined the number of employees that could lose their jobs.
The source also clarified that job cuts, if any, would unlikely impact Pixar’s theatrical output.
Disney’s CEO, Bob Iger, who was brought back by the company in 2022 to turn it around, had stated that the House of Mouse was looking at reducing streaming content to lower costs and would license third-party shows and movies.
What is the Target Price for DIS Stock?
Analysts remain bullish about DIS stock, with a Strong Buy consensus rating based on 16 Buys and five Holds. In the past year, DIS stock has declined by 10%, and the average DIS price target of $107.89 implies an upside potential of 20.6% at current levels.
