Last year when things with Pixar started to go sour, Disney quietly set up Circle 7, a computer animation unit dedicated specifically to making sequels to Pixar films. While this was perfectly legal under the rights deal set up between the companies, fans of Pixar - as well as the animators themselves - were much more horrified by the idea of the characters and stories being in non-Pixar hands than they were excited about the prospect of Toy Story 3.

Shortly after Disney bought Pixar, it was announced that only Pixar would make sequels to Pixar films - yet Circle 7 stayed open. Yesterday, however, it was revealed that, as of the end of May, the unit would no longer exist. While this is thrilling news to most everyone who follows animation, it's sort of a bummer for the 32 people who will be laid off. But hey, the LA Times insists that they'll all get new jobs right away, because everyone and his brother is making animation these days. So it's ok to be gleeful after all!

[via The Disney Blog]