REUTERS: Disney Will Lay Off People in the Animation Division

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Old 04 April 2013   #1
REUTERS: Disney Will Lay Off People in the Animation Division

The Walt Disney Co. will lay off workers at its film studio and its consumer products division within two weeks in an effort to cut costs, Reuters reported late Thursday.

The layoffs will come primarily from marketing and home video at the studio, with a smaller number coming from animation, according to the Reuters report, which cited anonymous sources.

The layoffs are a result of an internal audit ordered by CEO Bob Iger, who is seeking cost-saving measures in order to boost profits. ....
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Old 04 April 2013   #2
"For the quarter, which ended on Dec. 29, Disney reported net income of $1.38 billion...Revenue climbed 5 percent, to $11.34 billion."
(source - http://mediadecoder.blogs.nytimes.c...disney-profits/)

Forget the big numbers, they're a big company. The key take-home is 12% net income vs revenue. During tough economic times. Hint - that's a very nice number.

But it's not enough! Throw more people into the street! Cutty-cut-cut!
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Old 04 April 2013   #3
As much as the people that will lose their jobs saddens me, I can't place judgment on what a private company thinks about what is "enough". It's their turf and their rules.
Of course I'd like people to be less greedy, but hey, I'd rather have them the right to being so than to have govs. intervene with laws, regulations and other crap that's supposed to "protect" us.
The people that will be let go will definitely survive if they are talented and most of them I think they are. Those that aren't... well I'll get back on here to let you know the first time a stranger calls at my door asking me how am I doing.
Old 04 April 2013   #4
I'm 50/50 in this regard.

The reason being is that:

a) They just come around of a merger/acquisition. There will bound to be overlapping job scope (HR, etc, etc).

b) It will come around with baggage. I think it has been a while that in gaming, Disney is a licensing company. This is what happen when your IP is popular enough people are willing to pay in order to sell their 'game interactivity idea'. While you can make an 'adventurer' game, selling 'Disney's Alladin' game is much easier. You always win, even if the game itself is a flop. Like the Star Wars MMORPG that got closed, it doesn't hurt Star Wars movie or world a bit.

c) Just like the Sony and some alien invasion movie made by the same studio working for Battlefield LA, I think there is a limit to what outside movie Disney animation studios can work on. Some might not even work with Disney due to trade secret or storyline.

Combine this together, Disney realized that they have more than they needed, hence the cut off.

Layoff after merger/acquisition is almost normal, only in special occasion that there is no layoff for certain time.

In business there is profit per head, with currently I think Valve is holding the top stop, with 2.1 million profit per head in 2011? Or was it 2012? No wonder Valve fires people they no longer have use for.

On the other hand, Microsoft, for example, didn't fire anyone when they close the 3d software that they want to compete with sketchup back then. And guess what, they are not swimming in cash like Apple despite being 'Microsoft'.

It's all give and take.

The easiest thing to notice is that: is Disney laying off people they acquired from the purchase or some of them also a long term original Disney employee?

If none from original Disney side, they can be forgiven. Reason is that if your business owner is selling the business, is not more different that 'I'm closing shop. bye' except that you are lucky enough to still have a job. for how long, that is another matter.
Old 04 April 2013   #5
UPDATE: Disney Confirms Layoffs At Studio Following Internal Review

PREVIOUS, MONDAY AM: Disney shares are trading around their all-time high. But Wednesday looks like the day Disney will drop the ax for its expected layoffs. I have learned that about 150 people at Walt Disney Studios will receive pink slips. Sources say the cuts will come from across all of Disney Studios businesses, including the music and NYC-based theatre departments. At this point it looks like a one-time round of layoffs, but an overall reorganization affecting other divisions is planned for later this year and that could include more cuts. They’re coming as a result of an internal review ordered late last year by CEO Bob Iger and CFO Jay Rasulo to pinpoint superfluous positions and increase efficiency. But the company is already doing well with mega-blockbusters including The Avengers. Net profits for the fiscal year that ended in September increased 18% to $5.7 billion on revenues of $42.3 billion.

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Old 04 April 2013   #6
What's funny is that Disney Animation has been doing a pretty significant amount of hiring lately. Apparently, a good chunk of the laid off Dreamworks staff ended up there. I wonder if this round of layoffs is getting rid of the last remnants of their 2d team?

Last edited by Meloncov : 04 April 2013 at 12:09 AM.
Old 04 April 2013   #7
Let's face it, these big corporations will never make enough profit. Anyone who thinks that people matter to any of these companies is sorely mistaken.
If you knew all the known poisons, and out and out garbage that is being put into our food by the food industry, just so they can cut costs and increase profit, you would be appalled!
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Old 04 April 2013   #8
Quote: According to former Disney animator Tom Bancroft on Twitter, Disney gutted their hand-drawn animation division this afternoon, and laid off nine veteran animators, including some of the studio’s biggest names: Nik Ranieri, Ruben Aquino, Frans Vischer, Russ Edmonds, Brian Ferguson, Jamie Lopez and Dan Tanaka.
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Old 04 April 2013   #9
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