Disney axes 4000 jobs

Mi, 18.04.2001, Marcel Lanthemann

The trend towards downsizing in Hollywood continues. Following on the heals of AOL Time Warner, General Motors and NBC, Disney hopes by axing 4000 jobs to record a profit of 150 mil. dollars this year.

Poor trading conditions have forced the media giant to cut 4000 full-time positions by the end of July. With a total workforce of 120,000 employees world wide, this amounts to 3 per cent of the Disney workforce. All areas of the business are affected, including ABC, the Disney film studio, the cable channels and management. Before job losses take place, Disney has appealed to candidates who wish to take voluntary redundancy. This drastic retrenchment makes Disney the third US major to make such savage staff cuts. AOL Time Warner and General Motors with NBC took the same step only a few months ago. The primary driver is the need to make profit. The once-and for-all costs of this wave of redundancies are under 250 mil. dollars, against a potential profit of up to 400 mil. dollars. Disney personnel in the entertainment/amusement parks will not be affected by the restructuring. After all the firm that gave us Mickey Mouse is concerned not to leave behind a poor impression with its visitors in matters of customer care....