French Disney employees based in Paris often talk about "Burbank," the nickname given to the headquarters of the multinational they work for, located in Los Angeles County. Burbank has a hand in almost everything, from the content of the blockbusters produced and distributed worldwide to the internal organization of each subsidiary, as well as layoffs. Nearly 30 of the 250 employees are set to lose their jobs with the French branch of the entertainment giant, The Walt Disney Company France, as part of a major global plan to cut 7,000 jobs imposed a year ago by CEO Bob Iger.
This is the third wave of redundancies in France after those of 2019 and 2021, which have already led to the dismissal of almost 80 employees. The American method not only irritates the employees, but also the French administrative services. Very serious doubts exist about the reality of Disney's economic difficulties in France and therefore about the legitimacy of these redundancy plans.
A separate subsidiary from Disneyland Paris, The Walt Disney Company France is largely dedicated to movies, including distribution of Disney content in theaters and on television, dubbing, promotion and creation of original productions for the Disney+ streaming platform. These sectors are in difficulty worldwide, to the point that the multinational requires restructuring to remain competitive, according to Burbank.
In France, the job protection plan (PSE) announced in June 2023 set out the loss of 28 positions, including 14 in the home entertainment department, which management plans to outsource. "The current size of the DVD market in France makes it possible to consider moving this activity under license, which would bring us roughly the same operating margin without having the associated risks and costs," the company explained in an internal document. To support the group's strategic reorientation, Disney France is also planning to modify the scope of nine positions and recruit 20 digital staff.
It is difficult to get a precise picture of the economic health of the company, which does not publish its accounts and refused to answer Le Monde's questions. But for the employees, it's obvious: The economic reason for the PSE does not hold up, as the French economic situation cannot be confused with global trends. The success of blockbusters such as Avatar 2 and Black Panther 2, which recorded excellent results in French cinemas in 2022, accentuates their suspicions.
The latest meetings of the social and economic committee (CSE) have given employee representatives the opportunity to get involved. In October, they criticized a restructuring plan "linked more to a strategic financial decision than to any real economic difficulties in France," according to minutes seen by Le Monde. Based on a recent financial audit carried out as part of the PSE, the elected representatives claimed that "the company is doing well" and that "revenues from its activities remain profitable." They even claimed that the net profit of "€16 million" generated by The Walt Disney Company France in 2023 is "largely underestimated" by accounting tricks.
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