Pixar’s latest hit, Inside Out 2, has broken box office records and revitalized the studio after a challenging period. But for many who worked on the film, its success is a painful reminder of recent layoffs and intense production pressures.

A Much-Needed Win
After struggling with pandemic theater closures, strikes, and disappointing box office returns, Pixar desperately needed a hit. Inside Out 2 delivered spectacularly, becoming the highest-grossing animated film ever with $1.6 billion worldwide.
However, this redemption story has a darker side. In May, Pixar laid off 175 workers – 14% of its staff. Many who crunched to complete Inside Out 2 found themselves jobless just as the film rocketed to success.

“Unprecedented” Crunch
Sources describe the final months of Inside Out 2’s production as grueling. “I think for a month or two, the animators were working seven days a week,” one former employee reveals. “It was horrendous.”
While some crunch is normal in animation, multiple sources call Inside Out 2’s push “unprecedented” for Pixar. The pressure stemmed from viewing the sequel as make-or-break for the studio’s future.
“We need this movie to succeed because we won’t have a studio [otherwise],” was the prevailing mindset, according to one source.
Creative Caution and Controversy
Inside Out 2’s development wasn’t just rushed – it was creatively cautious. Sources say there were continuous notes to make the main character Riley seem “less gay,” including edits to remove any hint of “romantic chemistry” with her friend Val.

This apparent aversion to LGBTQ+ themes traces back to Disney leadership blaming a same-sex kiss for Lightyear’s poor box office performance. “It is, as far as I know, still a thing, where leadership, they’ll bring up Lightyear specifically and say, ‘Oh, Lightyear was a financial failure because it had a queer kiss in it,'” one source claims.
The Layoffs
The May layoffs devastated many employees, especially those who had worked extensively on Inside Out 2. Beyond losing their jobs, laid-off workers learned they wouldn’t receive bonuses tied to the film’s success – bonuses many relied on to offset Pixar’s relatively low base pay.
“To be told by our HR reps that we were not going to qualify for that bonus felt like an ultimate ‘f*ck you’ from Disney,” a former employee says.

The layoff process itself was jarring. Affected employees were immediately locked out of Pixar’s systems, leaving many scrambling to retrieve work for their portfolios. “There was no one from HR or anything supporting us or guiding us,” one source laments.
A Bittersweet Victory
For those laid off, Inside Out 2’s runaway success is painful to watch. “Yeah, it’s bittersweet,” says one former employee who worked on the film. “I mean, it’s like watching an ex be with a movie star, basically. It’s like, ‘I’m happy for you, but why?'”
Some can’t bring themselves to see the movie, knowing how their former colleagues are struggling. The irony of working on a film about mental health, only to lose their own health insurance and therapy benefits, isn’t lost on them.
Concerns for Pixar’s Future
Many worry that Inside Out 2’s success will reinforce problematic production practices and creative caution at Pixar. Sources describe low morale among remaining employees, especially as work ramps up on the next film, Elio.
“They learned nothing,” one source says about Pixar’s leadership. “Things are exactly the same, how they were before. Everybody’s working crazy hours to get Elio fixed.”
Despite these concerns, some former employees remain fans of the studio because of the passionate artists still there. But as Inside Out 2 heads to Disney+, there’s a lingering sense of injustice for those who helped create it but won’t share in its rewards.
“We love to tell stories. That’s our career,” one source reflects. “But when your work is put out there, you kind of want to benefit from the strength of that. People need to be compensated for that.”


