According to Variety, Deadline, and The Hollywood Reporter, Pixar is laying off 175 staffers — 14 percent of its workforce — as it shifts its focus back to projects meant for theatrical rather than streaming releases. These layoffs come months after Disney began dismissing employees by the thousands in an effort to reduce spending by around $5.5 billion. Though Pixar was never guaranteed to be shielded from the layoffs, it was able to avoid them last year due to production schedules that were already in place at the time.

In a memo sent to staff on Tuesday, Pixar president Jim Morris stressed that the layoffs — which many employees knew were coming — are part of the studio’s efforts to “return to our focus on feature films” and “one of the hardest changes” executive leadership ultimately decided to make.

“Despite the challenges in our industry over the past few years, you have all consistently shown up to contribute, collaborate, innovate, lead, and do great work at this studio,” Morris said. “I give you my deepest thanks, and for those who will be leaving us, I am hopeful that our paths will cross again, both professionally and personally.”

Inside Out 2, Pixar’s latest film, is scheduled to debut on June 14th.