OutsourcingWednesday, May 25, 2005
Disney will carve 1,000 IT staffers from its payrolls, shipping many of these workers to outsourcers IBM and Affiliated Computer Services (ACS), according to a media report.
The cuts – which will account for close to one-third of Disney’s total IT department – are expected to begin in mid-July. The employees affected work in Orlando, Los Angeles and New York, reported the Orlando Sentinel. Most of the IT folks will likely take on similar roles at IBM or ACS. Disney isn’t commenting on how many staff will end up without jobs, at this time.
Disney told workers of these moves on Thursday.
“Some employees, including those who work within the IT department but don’t hold technical positions, may be offered jobs elsewhere within Disney or will be laid off, the company told workers,” the paper reported. “Others may be hired by ACS or IBM on a short-term basis, ranging from 90 days to 12 months, at which time they would be eligible for a severance package depending on their length of employment.”
A Disney HR representative described the action as an “employee transition” and not a massive layoff. The media company hasn’t confirmed that IBM and ACS will pick up the workers but did say that “two outside domestic vendors” will get new business from Team Rodent. So it looks like the Orlando Sentinel is pretty spot on.