Disney Greenlights Outsourcing of 1,000 IT Staffers

Filed in archive Outsourcing News on May 15, 2005

According to the Orlando Sentinel, Disney will let go of 1,000 IT staffers (about one-third of Disney's total IT department) and distribute these outplaced workers to IBM and Affiliated Computer Services (acs). These workers will likely take on similar roles at IBM or ACS.

IT job cuts, which is expected to begin in mid-July, will affect Disney employees in Orlando, Los Angeles and New York. Disney has not yet reported on the number of IT staff that will become jobless.

The Orlando Sentinel reported: "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. 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."