New Round of Layoffs at Disney Animation and Circle 7

(O-meon.com) – Last week Disney CEO Bob Iger, responding to a shareholder’s question about there being a problem with “too many middle managers” at Walt Disney Feature Animation (WDFA), said he didn’t believe Disney had a problem with middle managers. Nevertheless, o-meon.com has confirmed that even as Disney management was preparing for last Friday’s annual meeting the company was continuing the reorganization of its animation division by laying off an unspecified number of “creative” and “development” executives. A source close to Disney animation said “that layoffs began last week.” The names and number of executives “cleaning out their offices,” according to this source, wasn’t known. An individual from within the Disney Company, who spoke on condition of anonymity, said, “Layoffs will be announced next week, not only of certain WDFA executives but also of some artists and technicians at the Circle 7 facility.” Under previous CEO Michael Eisner, Disney created Circle 7 Animation for the sole purpose of producing sequels to the extremely successful series of computer graphic (CG) animated films it released from production partner Pixar Animation Studios. In January, Iger and Pixar CEO Steve Jobs announced that the Emeryville animation studio had agreed, in principal, to be acquired by Disney. As part of the deal, Disney and Pixar’s animation operations would be rolled into one, new Disney-Pixar studio. Pixar President Ed Catmull will head the new studio, and Pixar’s creative genius John Lasseter will be its chief creative officer. Following the announcement, both Catmull and Lasseter paid a visit to WDFA in Burbank. While there, Lasseter informed staffers that Toy Story 3, then in development at Circle 7, would not be done in Southern California, if at all. Questions then arose about the eventual fate of Circle 7 and its creative and management staff.


During last week’s shareholders’ meeting, Disney CFO Tom Staggs said the Disney- Pixar deal could close as early as April or May. That news was as eagerly greeted by Disney’s shareholders as the announcement by John Lasseter at the meeting that, “I promise you, we will make films that will entertain you from the time the lights go off in the theater.” Iger also drew enthusiastic applause when he said, “To truly live up to our legacy, animation must be great. We must create animated films that raise the standard of the art and become true classics for countless generations.” “Actions speak louder than words,” a Pixar shareholder anxiously awaiting the arrival of his shares in the Walt Disney Company told o-meon.com. “I think he’s (Bob Iger) on the right track. He’s openly acknowledged that Disney lost its way over the past ten years, and he’s cutting the deadweight out of Disney animation. I’m really excited by all of this.” The Walt Disney Company did not respond to repeated requests for information regarding restructuring in its animation division.