Layoffs Underway After Disney Acquires Fox

BURBANK (CBSLA/AP) – Disney Thursday began the process of laying off senior executives at 21st Century Fox after it officially closed the mega $71.3 billion deal to acquire the corporation earlier this week.

According to the Los Angeles Times, about two-dozen mostly high level Fox executives who work at the 20th Century Fox Studios lot in Century City are being let go. The acquisition became official Wednesday.

At least 3,000 people, mostly at Fox, are expected to be laid off in the coming months as part of the merger, sources told the Times.

Disney also surprisingly announced Thursday it is shuttering the Fox 2000 label, which produced several films including "Fight Club," "The Devil Wears Prada," "Hidden Figures," "The Fault in our Stars," "Love, Simon" and mostly recently "The Hate U Give."

Major cuts are expected at departments that have overlap, such as distribution, home video and marketing.

Disney has not disclosed a target number for job cuts. However, the company has said that it expects "at least $2 billion in cost synergies by 2021 from operating efficiencies realized through the combination of businesses," most of which will come through workforce reductions.

Disney's plan to acquire 21st Century Fox was first announced last July, after Comcast dropped out after a bidding war with Disney. It now takes over Fox's television and movie studios, cable channels FX and National Geographic, along with a controlling stake in streaming service Hulu, and international properties in India and Latin America.

Fox businesses, including Fox News Channel and the Fox television network, remain with media mogul Rupert Murdoch and his family.

(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press and City News Service contributed to this report.)