The landscape of the entertainment world changed earlier this year with Walt Disney Company's historic acquisition of 20th Century Fox. However, while many fans were excited at the prospects acquisition presented, such as the introduction of the X-Men and Fantastic Four into Disney's Marvel Cinematic Universe, there was also concern about negative impacts of the deal, including layoffs. Now, it seems that a third round of such layoffs has hit Disney and Fox film studios.
According to The Hollywood Reporter, a third and relatively small round of layoffs hit on Wednesday as the combined companies continue consolidation efforts. Per the report, the layoffs this time impacted fewer employees than the previous two rounds which were noted at 38 and 100 people respectively. While Disney did not comment on these latest layoffs, they appear to be happening in an attempt to reduce redundancy.
The idea of layoffs in the wake of the acquisition shouldn't come as too much of a surprise. Not only is it common for there to be layoffs in any merger/acquisition situation, Disney Chairman Bob Iger himself appeared to hint at layoffs soon after the acquisition first went through, noting at the tiem that it would be part of the "evolution" of the two companies joining forces.
“Our integration process will be an evolution, with some businesses impacted more than others,” Iger wrote in a statement earlier this year. “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.”
"This is an extraordinary and historic moment for us -- one that will create significant long-term value for our company and our shareholders," Iger continued. "Combining Disney's and 21st Century Fox's wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.”0comments
And this may not be the last round of layoffs, either. THR noted that layoffs are expected to continue in the coming months as Disney works towards the $2 billion in cost savings by 2021 as was noted prior to the close of the Fox deal.
Are you surprised by this new round of layoffs? Let us know in the comments below.