WSJ [excerpt]: When #Disney abruptly laid off more than 300 people in #Beijing in late March, it said the move was meant to save money as part of ongoing layoffs. Privately, Disney executives had additional reasons for the staff cuts.
Disney Chief Executive Bob Iger was scheduled to meet the following week with Republican Rep. Mike Gallagher, who chairs a congressional committee focused on U.S. competition with China. Executives were braced for pointed questions about #datasecurity.
The Beijing team, which specialized in #technology that allows Disney’s #streaming services to offer viewers personalized recommendations, had access to some U.S. customer data, according to people familiar with the matter.
Disney’s #lawyers voiced concerns that the Beijing team’s access to such data would be seen as a potential red flag by the committee, even though the data had been accessible by staff there for years, some of these people said.
The layoffs and Disney’s previously unreported efforts to assuage potential concerns in Washington about China’s influence represent another chapter in its at-times thorny relationship with the country. In addition to being the world’s second-largest market for theatrical movie releases, China is home to hundreds of millions of customers for Disney’s theme parks, TV shows and consumer products.
“Disney’s decision to restructure and consolidate these operations was not motivated by data security vulnerability concerns,” a company spokesman said. The company in February said it planned to eliminate 7,000 jobs as part of a cost-savings effort.
... China is an important revenue driver for Disney’s consumer #business and became an important hub of technological work for the company’s yearslong effort to grow its streaming business.
While Disney says it stores all U.S. streaming customer data domestically, the Beijing staff worked on features such as personalization and search that require access to some subscriber information, people familiar with the matter said.
Lawmakers on both sides of the aisle have articulated concerns in recent years about the Chinese government’s ability to access American user data. The country has adopted laws and rules under Xi Jinping that could give the government access to data collected by companies operating in China.
Gallagher is among the members of Congress who have voiced concerns that China’s government could use its leverage, especially in the tech and media industries, to strengthen its military capabilities, access Americans’ user data and influence U.S. pop culture by forcing entertainment companies to self-censor in a way that helps burnish the country’s global image. In January, the Wisconsin Republican said he wanted top executives from Silicon Valley, Hollywood and professional sports leagues, including Iger, to testify before the committee he oversees.
#news #geopolitics
Senior Product Designer | UX/UI and design systems
1moWould you be hiring designers for the identity team? I recently got laid off from Intuit where I have spent the last 5 years working on identity and access management.