More Corporate Layoffs

It was recently announced that by the end of the year, several major companies will have laid off thousands of employees. Some of these companies include Disney, Blackberry and Wells Fargo.
The reason Disney is laying off employees is because the company is consolidating many of its divisions in order to cut back on expenses. The first round of layoffs at Disney occurred in the film division. Those affected were individuals that worked in the home marketing, animation and music departments. A few months later after these initial layoffs, the company laid off one hundred employees in the interactive division.

Some industry professionals were a little surprised at these layoffs, because Disney posted a strong quarterly profit. The profit was estimated to be close to five billion dollars, which was an eighteen percent increase from the previous year. One of the reasons Disney might be consolidating divisions and laying off employees, is because the company is positioning itself financially (and staff wise) for the upcoming development and production of Star Wars films. As a reminder, Disney purchased the rights to the Star Wars franchise from Star Wars creator George Lucas late last year. The total price of this purchase was a little over four billion dollars. The executive team at Disney is probably anticipating that they will have to spend a large additional amount of money just to ensure that the new Disney Star Wars films live up to the popularity and reputation of the original franchise series.

Wells Fargo is another major company that has laid off hundreds of employees. The first round of layoffs involved twenty three hundred employees in the bank’s mortgage division. Now the bank has recently announced that it will be laying off an additional eighteen hundred employees from the mortgage department. According to company representatives, the reason Wells Fargo is laying off so many mortgage employees is because the bank’s mortgage business has significantly decreased over the past year. However, there are others who say that these layoffs are due to the number of homeowner lawsuit’s the bank has faced over the past several months.

No one in the tech industry was really surprised to hear that Blackberry planned to layoff over four thousand workers. This is because sales have been declining at the company for quite some time. Despite all these layoffs, the management team at Blackberry still insist that they are viable company. Most industry analysts find this hard to believe, since the company recently posted a one billion dollar loss.

Given the current high unemployment rate, all these layoffs couldn’t have come at a worse time.

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