is losing around 175 of its workers amid a cost-cutting drive. It was reported as far back as January that layoffs were planned for the digital animation pioneer and the studio’s headcount is being reduced by around 14 percent.

According to , the downsizing is part of moves to scale back on development of original shows and movies for as the company tries to make its streaming division more profitable. As such, Pixar is expected to once again focus entirely on making theatrical feature films.

Although it was once an ultra-reliable hit factory, Pixar has had a rough go of things over the last few years. Disney has suggested it was a mistake to have to expect that Pixar movies will eventually come to Disney+ (where it after Covid-19 prompted theater closures). That may have played a role in Toy Story spin-off  failing to meet box office expectations. While last year’s Elemental became a word-of-mouth hit after a slow start, it ultimately earned far less than many of previous Pixar smashes.

Pixar will be hoping it can start to turn the corner next month when it releases Inside Out 2, the sequel to one of its very best films. Disney’s animated division as a whole is — Toy Story, Frozen, Zootopia and Moana sequels are all set to arrive over the next few years.