Pixar Animation Studios, a subsidiary of Walt Disney (DIS.N), is reportedly in the process of downsizing its workforce as it wraps up production on certain projects, leading to an excess of staff, according to an inside source cited by Reuters on Thursday.

Contrary to TechCrunch's earlier report of potential layoffs reaching 20%, the source refuted this figure, stating that Pixar has not finalized the number of job cuts and insisted that the layoffs are not imminent. The source did not offer a specific estimate but emphasized that the job reductions would not affect Pixar's theatrical releases. The studio, based in Emeryville, California, had expanded its team for streaming series production, and as these projects conclude, there is now a surplus of personnel.

Disney CEO Bob Iger, who returned in 2022 to steer the company's course, has signaled a shift in the company's streaming strategy, aiming to reduce the production of in-house content to control expenses. Instead, Disney plans to license more shows and movies from external sources. Last June, Pixar initiated its first significant job cuts in a decade, eliminating 75 positions, including two executives tied to the underperforming film "Lightyear."

Pixar, renowned for iconic franchises such as "Toy Story," "The Incredibles," and "Finding Nemo," faced a slow start with its latest movie, "Elemental," in 2023. However, the romantic comedy featuring the coexistence of the classical elements—fire, water, earth, and air—ultimately grossed nearly $500 million in global ticket sales. Disney acquired Pixar in 2006 as part of its strategy to rejuvenate Disney Animation, which was then struggling. As of now, Disney has not responded to Reuters' request for comment on the reported job cuts at Pixar.