The Layoffs Are Coming! “…Disney and Fox Staff Voice Frustrations”
March 25, 2019
“Disney has said all along that it intends, due to the merger, to save $2 billion annually by 2021, 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 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 midbudget 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.”
https://www.hollywoodreporter.com/news/as-layoffs-arrive-disney-fox-staff-voice-frustrations-1196346
This is bad news for everything / one bought out by Disney but it’s actually good news for those left at Fox. Those whom were bought out by Disney are sweating bullets meanwhile those who weren’t became stock owners.
In any case cutting cost at Disney most likely means stocks will rise at least in the short term.