Disney Expected To Lay Off Thousands Of People After Fox Buyout
"I wish I could tell you the hardest part is behind us," Disney CEO says to staff.
Disney has finally, officially closed its $71 billion deal to buy the majority of Fox's entertainment assets. As part of the acquisition, Disney is expected to cut "thousands" of jobs as it eliminates duplicate jobs as part of the massive the restructuring, according to multiple reports.
Disney CEO Robert Iger sent a memo to staff regarding the Fox deal, and in it he acknowledged that tough times lie ahead. CNBC obtained the memo.
"I wish I could tell you that the hardest part is behind us; that closing the deal was the finish line, rather than just the next milestone," he said. "What lies ahead is the challenging work of uniting our businesses to create a dynamic, global entertainment company with the content, the platforms, and the reach to deliver industry-defining experiences that will engage consumers around the world for generations to come."
Iger went on to say that the "integration process" will affect some business units more than others. "We've made many critical decisions already, but some areas still require further evaluation. We may not have answers to all of your questions at this moment, but we understand how vital information is, and we're committed to moving as quickly as possible to provide clarity regarding how your role may be impacted," Iger said his note to employees.
Iger said he has a "deep appreciation" for how an acquisition like Disney's impacts people involved both personally and professionally. "I ask for your continued patience in the days to come as we combine this collection of great assets to create the world's premier entertainment company," he said.
As part of Disney's acquisition of Fox, the House of Mouse gets franchises like Deadpool, X-Men, The Simpsons, Family Guy, and numerous others, as well as a series of TV networks and film studios. Indeed, it is one of the biggest mergers in the history of the entertainment business.
As of September 30, The Walt Disney Company reportedly had more than 201,000 employees, and this was before the Fox deal closed.
Fox will live on in a limited capacity, with a new company--Fox Corporation--operating units such as the Fox News Channel, Fox Sports, and other TV networks.
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