This editorial originally ran in the 2/14/23 edition of the weekly ComicsXF Newsletter. Subscribe here to get the latest in comics news, opinions and other assorted goodies every Tuesday morning.
Last week The Walt Disney Company ($DIS) presented its Q1 earnings results and effectively ended a headline-grabbing proxy fight. You can get caught up in a narrative involving infamous Marvel executives, activist investors and cheerleading for your favorite billionaire. It’s a good story, and we get it, this is a website about comics. We love a good story, and even more love juicy behind-the-scenes drama.
But we want to put a different narrative to the forefront. One that matters more to working-class people like us.
Last week The Walt Disney Company ($DIS) told 7,000 employees that they would be facing layoffs as part of $5.5 billion in cost reductions. This represents just over 3% of the total Disney workforce. These layoffs will lead to an 83% increase in odds of developing new health conditions, up to a 3x increase in the risk of suicide, a 4x risk of substance abuse and a 6x risk of comiting violent acts. Most will end up earning 20% less than the surviving workers.
But let’s not act like those survivors will end up free and clear. The remaining workforce will see a 20% decline in job performance and a 41% decline in job satisfaction. Hell, the company itself can expect a 31% increase in voluntary turnover.
Layoffs destroy trust in leadership. Layoffs destroy lives. Layoffs feed the capitalist machine.
And let it be known, the machine ate well. Disney’s stock ticker soared, recovering after significantly underperforming the market in the last quarter. Great news for the top 10% of American earners who own 70% of all stocks.
The person most excited for this announcement is likely Trian Partners’ Nelson Peltz, the activist investor fighting for cost reductions, the reinstatement of the dividend and a seat on the Disney board. In an interview with CNBC’s Jim Kramer, a joyful Peltz said, “Management at Disney now plans to do everything we wanted them to do.” Reminding us that a seat on a board of directors doesn’t matter when the board is doing what you want.
Kramer pressed Peltz, asking how much money he made on the deal. Peltz laughed it off, saying, “Who’s counting?” Well, we are.
Eighteen billion dollars. Peltz earned just under the GDP of Afghanistan since he started his crusade. If returning CEO Bob Iger buried anyone, he buried them like King Tut.
Think about that for one minute: $18 billion dollars; $26 million for each family that will be devastated by these layoffs. That’s what this pissing match was worth to the ultra-rich. So we can talk about how the theme parks will get better or how it’s great that the charismaless void that is Kevin Feige didn’t get fired, but let’s not forget who we are dealing with here. These aren’t some cheerful mice, just a bunch of rats.
Zachary Jenkins runs ComicsXF and is a co-host on the podcast “Battle of the Atom.” Shocking everyone, he has a full and vibrant life outside of all this.
