Disney-Fox Deal Could Cost Thousands Of Jobs

The expected synergies to come from Disney’s $52.4 billion purchase of most of Twenty-First Century Fox’s assets could mean job cuts of between 5,000 and 10,000 at the Mouse House once the deal closes, one media analyst said.

Disney, in announcing the dramatic acquisition on Thursday, said it expected “synergies” in combining the Fox assets with its own to range up to $2 billion.

Synergies are often code for layoffs.

But, reports The NYPost,  BTIG media analyst Rich Greenfield, in a report, said the synergies could swell to $2.5 billion.

The analyst explained that “a portion of the cost cuts will come from a reduction in film and television products as the combined company culls down to the best overall products with termination of projects resulting in less hiring.”

To get to its $2 billion goal, Disney will have to cut well over 5,000 jobs, Greenfield said.  That number could range as high as 10,000.

Disney declined to comment on the job cut estimate.

A source with knowledge of the deal said Greenfield “has zero information, and this is just pure speculation.”

The analyst said the Disney-Fox deal “will most certainly lead to higher consumer prices, bigger and fatter video bundles, less upstart virtual multichannel video programming distributors competition and a meaningful reduction in jobs.”