$1.6 billion from tax cuts are apparently not enough to stop Disney’s CEO – who received a four year compensation package of over $400 million – from promising layoffs for one of the world’s most successful companies.
Bob Iger, the company’s chairman and CEO, believes that the company will generate $2 billion in savings from the layoffs, especially now that it has acquired 21st Century Fox.
Iger told CNBC in an interview that, “We’re just beginning a consolidation process across the world. And we’ve been candid about that with people in the organization. There’s work to do to get to the synergies that we talked about, which were cost synergies. We have consolidation ahead of us.”
When asked if more layoffs were on the horizon, he assured CNBC that they were.
Disney heir, Abigail Disney, called out the company this week for its “insane” compensation to Iger. She believes that the pay at the top levels has become so obscene that she wants 50% of executive bonuses to go to the lowest earning company employees.
These future layoffs serve to reinforce many of the criticisms of trickle down economics. Despite a generous tax cut and a 40% increase in yearly profits from 2017 to 2018, Disney will shed jobs rather than pass the gains to the workers.