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Disney Studios Undergoes New Round of Staff Cuts

Jobs will be lost at both the Disney and Fox studios.

Disney was laying studio on Wednesday as the company seeks to conserve money after its $ 71.3 billion in part with 21st Century Fox.

Disney had no comment on the move, though a person familiar with the situation will be at the Disney and Fox studios.

Disney CEO Bob Iger recently said that while 20th Century Fox will continue making movies under that brand, the output would be roughly six per year.

Iger is also dealing with redundancies caused by the Fox merger and about $ 57 billion in debt.

Plus, the company will likely be shelling out another $ 9 billion to purchase Comcast's stake in Hulu. Disney said Tuesday it has operational control of Hulu, as it already owns two-thirds of the streamer, and Comcast may require Disney to purchase its share as early as January 2024 at a price that would value the entire entity at $ 27.5 billion. 1

9659006] Disney is also spending billions to create its Netflix competitor, dubbed Disney + and due Nov. 12, and analysts expect the product to lose about $ 2.9 billion this year and another $ 4.3 billion by 2020. The conglomerate, which sports a $ 242 billion market cap on Wall Street, is also expected to spend some $ 24 billion over the next five years in upgrades on cruise ships and theme parks, including areas dedicated to Marvel superheroes, and the Avatar film franchise.

Like the entire legacy TV industry, Disney is also contending with cord cutting as about 2 percent of cable and satellite customers each year their services and sign up exclusively with various streamers. ESPN sports network, for example, has been release subscribers for years and in Disney's most recent fiscal year reported at 3 percent decline in operating income at its Media Networks segment.

The Disney layoffs appear to be widespread across the studios and comes Two months after the company pink-slipped about 3,000 workers in its post-Fox iteration.

Meanwhile, at Fox Corporation, which consists of Fox News Channel, the broadcast network and other assets Disney did not purchase, things have been less dire for employees. Chief executive Lachlan Murdoch, for example, doled out from $ 1,000- $ 3,000 in free stock to rank and file employees after the Disney transaction.

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