One of the biggest shifts in power occurred this year in Hollywood with Disney's acquisition of 20th Century Fox. And, after an initial wave of job cuts, it appears more could be on the way.
Bob Iger, the Chairman and CEO of the Walt Disney Company, told CNBC on Thursday that the company has only just started with global job cuts as Disney works to integrate 20th Century Fox.
"We're just beginning a consolidation process across the world. And we've been candid about that with people in the organization," Iger told CNBC's David Faber.
Iger explained that the reason for these cuts is to help create beneficial synergies for the entire company. Synergies, in this case, refers to the impact business tip-ups can have on profits and revenues. Forecasts from Disney executives reveal the combined job cuts of employee positions and business segments that were duplicated from the merger could save Disney $2 billion in costs.
"We're very early into this process and I've never second-guessed decisions that we've made. And I'm certainly not going to second guess this one, not at this point anyway," Iger continued.
On top of the job cuts, Iger also revealed during Disney's investor day on Thursday that he plans to step down in 2021. He told investors that he expects his contract "to expire at the end of 2021." He did clarify that he will stay on to ensure a smooth transition until Fox has been fully assimilated and Disney+ is off the ground.
Iger continued with CNBC, saying, "The most important thing is that the company get through the transition seamlessly. I believe that two-and-a-half years from now, or roughly two years after we've launched this massive initiative, the company — it will be well on its way."
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