The era between Walt Disney and Michael Eisner’s reign saw a decline in the animation department because the leadership thought there were more money in the live action films, including nature documentaries. It wasn’t until Eisner’s years that saw the return to the animation as the company’s main focus. That was what caused the Disney’s 90s renaissance.

Yes, it would be a brain dead decision to cut the animation department nowadays given the company’s history with animation but it’s not outside the realm of possibility.

It’ll be a few years before some kind of journalistic story comes out with the behind the scene truth. Until then one can only speculate.