Disney's Iger says that several jobs are cut out according to the Fox agreement
Disney's CEO said the company has just begun to make global redundancies as it seems to incorporate its newly acquired 21st Century Fox assets.
] Bob Iger, executive and managing director of Walt Disney Company, added that the work reductions are necessary to generate beneficial synergies, an industry term that refers to which Impact of a Business Exercise May Have on Profits or Revenue
In this case, Disney's leaders have forecasted about $ 2 billion in cost-saving synergies when the overall company cuts business segments or employees that were duplicated through the Fox acquisition.
"We begin just a consolidation process worldwide. And we have been sincere about it with people in the organization, "said Iger CNBC's David Faber on Thursday." There is work to be done to get the synergies we talked about, which were cost synergies. We have consolidation ahead of us. "
Asked explicitly if there are more job cuts to come, Iger replied in the affirmative.
" We are very early into this process and I have never guessed others that we have made. And I certainly will not guess this, anyway, "he said.
Iger said that his conversations with Fox's Rupert Murdoch which eventually led to $ 71[ads1] billion being based on the launch of Disney +.
The downturn with CNBC came shortly after Iger and other Disney leaders revealed Disney +, the company's upcoming direct consumer offerings. The streaming service was launched on November 12 and will cost $ 6.99 per month or $ 69.99 per year.
Iger also confirmed on the company's investor day on Thursday that he will go down in 2021.
"I expect my contract to expire at the end of 2021," said Iger during Disney's investor day presentations. "And I should say" and this time. I mean it, "but I've said it before."
Iger has postponed his contract with Disney twice during his time and has made a successful Disney + a priority in his last years at the head of the company. [19659005] "The most important thing is that the company gets seamlessly through the transition, Iger CNBC said. "I think two and a half years from now, or about two years after we launched this massive initiative, the company – it will be good on the way."
"It will be the right time for a corporate-level transition. The Fox acquisition will have been assimilated. We're going to be driving directly to the consumer site," he added.
