Posted on 03/22/2019 10:29:09 AM PDT by Red Badger
Multiple employees say that Disney has been less than forthcoming about who will be let go and when.
At Walt Disney's shareholder meeting two weeks ago, CEO Bob Iger spoke of the "long-term value" inherent in the company's pending acquisition of most of 21st Century Fox. "We will hit the ground running as soon as the deal closes," he told attendees.
The flowery language, arguably befitting of such a monumental deal, was typical of the comments coming from Disney for more than a year as regulators slowly approved the partial merger.
Nary a public word was spoken about layoffs, but less than two days after the $71.3 billion deal officially closed at two minutes past midnight ET on Wednesday, it was clear that hitting the ground running means, at least initially, lots of lost jobs.
"Today I hate everybody," said one nervous employee who worries for his job. "I hate Disney for buying Fox, I hate Fox for selling, I hate the politicians for allowing it to happen."
Part of the frustration, multiple employees tell The Hollywood Reporter, is that Disney has been less than forthcoming about who will be let go and when. Regarding severance, employees have been told they will get two weeks of pay for every year served, with a maximum of two years in severance pay.
Says one Disney employee: "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."
Indeed, Disney hasn't disclosed the number of jobs that would be lost — and that has yet to change. Analysts estimate 4,000-10,000, though several employees say the number being floated among people in the know is closer to 3,000.
Among the many assets Disney purchased was the Fox film and TV studio, where several in senior leadership were given notice throughout the day on Thursday, including 20th Century Fox film president of domestic distribution Chris Aronson, president of worldwide marketing Pamela Levine, co-president of marketing Kevin Campbell and chief content officer Tony Sella.
An employee at the Fox studio lot described a "revolving door of execs going in and out of a conference room staffed with Disney HR."
Others at Fox getting their walking papers included international distribution president Andrew Cripps, executive vp corporate communications Dan Berger, executive vp legal affairs Bob Cohen and executive vp publicity Heather Phillips.
One employee on the TV side told THR how disheartened the television employees were at witnessing the carnage in film, but later the ax began to fall there, as well, with Twentieth Television president Greg Meidel let go.
Disney also laid off Fox Consumer Products boss Jim Fielding and sources say that of about 50 U.S.-based staffers in that division, five have received pink slips. "I've never seen anything like this — from any company," says a Fox employee who witnessed Thursday's drama.
Disney has said all along that it intends to save $2 billion annually by 2021 due to cost savings brought about by the merger, and such rhetoric usually means jobs will be lost. "This is what happens in mergers," explains Northlake Capital Management founder Steven Birenberg. "It's partially the point, as cost savings boost the financials."
Meanwhile, over at Fox Corporation, which now consists of the assets Disney did not purchase, including Fox News Channel, Fox Business Network and the Fox broadcast network, CEO Lachlan Murdoch announced to employees that all of them were owners of the new company as each of them would be be gifted between $1,000-$3,000 in stock, depending on their years of service..
One of the biggest surprises Thursday was that Disney said it would shutter Fox 2000, the label famous for mid-budget films like The Devil Wears Prada and Hidden Figures. Disney expects to complete production and distribution of Fox 2000's The Art of Racing in the Rain with Kevin Costner and The Woman in the Window with Amy Adams and Gary Oldman, and perhaps other movies in the works at the label.
"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," said Marty Bowen, producer of Fox 2000 titles like Fault in Our Stars and Love, Simon.
Bowen added, "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."
“..People are panicking — and rightfully so — because nobody is telling them anything.”
Disney is just another Mickey Mouse outfit.
Yup. Being acquired sucks. Part of it is that Disney probably hasn’t made all the decisions. Last time I got bought there were layoffs on day one, and they straight out said they weren’t done, there would be more in 60 to 90 days as they got a better handle of how the companies fit together.
Do Disney staffers voice their frustrations as Mickey or Donald?
If only we had Fascism! Then the politicians would control all of the private corporations and these tragedies would not occur! [/s]
learn to code
Tough toenails, it’s happened to plenty of us.
No Canadian company. They’re acquisition based, average of a company a quarter. They’re very good at it.
They’ll throw you away like yesterday’s newspaper!
LOL!..........................
Goofy...........................
Somebody hasn't been in private industry very long. It happened to me, it's happened to all of my friends, and unless you're working for your Dad's auto parts store (and maybe even then) it'll happen to you. Suck it up and enjoy the Trump job glut.
eeek .. eeek eeekkk!! Et Tu Disney!!
Maybe they should have brought in Mitt Romney to negotiate the buyout (2012 joke).
I lost my job at Time Warner Cable after 19-1/2 years in 2010 and still struggling. I received three weeks pay for every year I had worked but have gone through rounds of unemployment and contractor work ever since. I expect I’ll retire early in a few more months.
So part of me has sympathy for what these employees are going through but also a bit of schadenfreude that they expected their parent company’s liberal policies would somehow not affect them personally.
“Normal operations when mergers happen. They should have .........................”
This is probably the nice, gentle and kind phase I, by the HR ghouls.
The next 2 phases will be brutal.
People will be escorted off the premises, by security guards with a Kinko box loaded with heir personal belongings.
Happened to me in 1980.
I got a job with a Fortune 100 company, and on my 90th day everybody was fired because the division we worked for was sold to an overseas outfit, and the plant moved there..................
Many use Grumpy's voice, but then it is off to reeducation camp. When they return, they use Happy's voice. On a side note, the Accountants also use that voice exclusively, especially when they raise prices.
First I heard that Fox News and Fox Business News weren’t part of the deal.
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