Disney is laying off 14% of Pixar's total workforce in a round of job cuts that was expected for some time but delayed due to production schedules.

About 175 employees of Pixar Animation Studios, a subsidiary of Walt Disney Studios, were let go on Tuesday, marking the largest restructuring effort at the company. 38-year history. Senior leadership not touched according to reports.

Under the restructuring, Pixar will no longer produce original series for its streaming services, focusing instead on “feature films,” according to an internal memo seen by New York Times.

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Tall Q4 2023 earnings call in November, Disney CEO Bob Iger expressed the need to shift the company's strategy toward “quality” rather than “quantity” programming.

“By the time the pandemic hit, we were leaning toward a huge increase in the quantity that we were doing. And I've always felt that quantity can actually be a negative when it comes to quality. And I think that's exactly what happened. We lost some focus,” Iger said. “And so, working with the talented team at the studio, we're looking — and working to consolidate, which means doing less, focusing more on quality.”

During the pandemic, Disney released three Pixar movies (“Soul,” “Luca” and “Turning Red”) on Disney+ rather than in theaters, a first for the company as it struggled to navigate theater closures and Covid restrictions.

Earlier this month, Disney (which also owns Hulu) announced that she will offer a streaming package with Warner Bros. Discovery combining Disney+, Hulu and Max for subscribers. It is set to be released this summer.

Disney+ saw a loss of 1.3 million core subscribers each quarter in the first quarter of 2024, presumably due to price increases.

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“When you fix or address these issues … you do three things. You become aggressive about making sure the movies you're making can be even better,” Iger said of the company. Q1 earnings call in February. “Sometimes, you kill projects that you don't believe in. And, of course, you put new things in the pipeline that you believe in, that you have a lot more confidence in, and we're doing all of that.”

The next Pixar movie to hit theaters is Inside Out 2. planned for a June 14 release.

The Walt Disney Co. it was upstairs up 12% year over year as of Wednesday morning.