The Walt Disney Company is set to make even more employee cuts as they plan to lay off more than 120 employees, who were part of its purchase of Fox assets.
On August 8 and August 28, Walt Disney Company filed notices with the state Employment Development Department announcing permanent layoffs of 130 employees at 20th Century Fox Film Corporation in Century City.
These notices were filed under the California Worker Adjustment and Retraining Notification labor code. This code states that companies must provide 60 days of public notice if they plan to lay off 50 or more workers.
The Walt Disney Company has announced a total of 394 layoffs since the acquisition – all at Fox Studios. These recent notices have come forward after an earnings call on August 6. Bob Iger, the Disney Chief Executive, has stated that Fox’s performance “was well below where it had been, and well below where we hoped it would be when we made the acquisition.”
In order to track layoffs at Disney, there is The WARN letters, but they have not yet commented on exactly how many employees the company will let go due to the $71.3 billion acquisition of several Fox assets.
It has been rumored that Disney will eventually lay off a total of 3,000 employees due to this acquisition, with the majority of cuts coming from Fox workers located in Los Angeles County.
These incremental layoffs aren’t uncommon. Mitchell Marks, a management professor at San Francisco State University, explained that since Disney is following a major acquisition, this is pretty usual. But, where it could go wrong is the company’s method. Fox Studios workers now fear they could be dismissed next and grow distracted at work, affecting the company even more.
These layoffs make up less than 1% of the Walt Disney Company’s total workforce as the company currently has about 201,000 employees. (Approximately 13,000 of these employees are in Los Angeles County.)
Disney has not yet commented on the matter.
Source: LA Business