With the Disney Fox merger now complete, changes are already taking place that will result in hundreds of employees losing their jobs. As one would expect, workers are frustrated, agitated, and angry as their futures with the new company are still unknown.
What’s happening:
- The Hollywood Reporter spoke with employees at Disney and Fox following the completed merger of the two companies.
- Many workers are upset and fear for their jobs, claiming they aren’t being told anything about potential layoffs.
- During the Disney shareholder meeting on March 7, CEO Bob Iger said, "We will hit the ground running as soon as the deal closes." That deal closed this past Wednesday morning at 12:02 am.
- The following day, Disney announced that it was shutting down the Fox 2000 label which came as a surprise to many. Fox 2000 produced films such as Diary of Wimpy Kid, The Devil Wears Prada and Hidden Figures.
- THR says, “Nary a public word was spoken about layoffs, but less than two days after the $71.3 billion deal officially closed…it was clear that hitting the ground running means, at least initially, lots of lost jobs.”
- According to THR, employees they’ve spoken with have indicated that Disney has not been candid about which jobs they plan to eliminate and who will be let go.
- As for severance packages, employees are expected receive two weeks of pay for each year of service maxing out at two years in severance pay.
- Disney has not publicly announced the number of jobs that will be lost. Some analysts believe it will be between 4,000-10,000. However, THR says, “several employees say the number being floated among people in the know is closer to 3,000.”
What they’re saying:
- Employee who worries for his job: "Today I hate everybody. I hate Disney for buying Fox, I hate Fox for selling, I hate the politicians for allowing it to happen."
- Disney employee on not receiving information: "We feel like we're the ones who have been acquired because the people at Fox know what their severance packages are, if they are going to get let go, and nobody at Disney knows anything. People are panicking — and rightfully so — because nobody is telling them anything."
- Employee at the Fox studio lot: "revolving door of execs going in and out of a conference room staffed with Disney HR."
- Fox employee: "I've never seen anything like this — from any company."
- Northlake Capital Management founder Steven Birenberg offering his observation: "This is what happens in mergers. It's partially the point, as cost savings boost the financials."
- Marty Bowen, producer of Fox 2000 titles like Fault in Our Stars and Love, Simon: "I'm honestly angry, shocked and really, really hurt. As a life time fan of all things Disney, this is difficult for me to say, but I think the shuttering of Fox 2000 is going to go down as the one big mistake The Mouse has made in an otherwise flawless strategy. The 2000 Bungalow is a safe haven for filmmakers. A place where laughter and tears coexist and where the first thought was always 'what's best for the movie.' I know efficiencies must be achieved when two behemoths become one, but we can never forget the importance creativity and passion play in the process of making great movies."