Disney Outsources more Jobs

[font=&quot]Came across this article today. Disney is outsourcing up to 1000 Information Technology Jobs. Just one more thing to cut costs and services.


[/font] Disney greenlights outsourcing of 1,000 IT staffers

By Ashlee Vance in Chicago (ashlee.vance at theregister.co.uk)
<small>Published Friday 13th May 2005 21:34 GMT</small>
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 <cite>Orlando Sentinel</cite>. 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. <script type="text/javascript"> Ads_kid=0;Ads_bid=0;Ads_xl=0;Ads_yl=0;Ads_xp='';Ads_yp='';Ads_opt=0;Ads_wrd='';Ads_par='';Ads_cnturl='';Ads_sec=0;Ads_channels=''; Ads_prf='vcl=' + GetCookie('vcl'); </script> <script type="text/javascript" src="http://a.as-eu.falkag.net/dat/cjf/00/15/58/72.js"></script> <script type="text/javascript" language="JavaScript" src="http://a.as-eu.falkag.net/dat/bjf/00/11/27/40.js"></script> <script language="JavaScript">function Ads_PopUp() {}</script>

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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 <cite>Orlando Sentinel</cite> is pretty spot on.

A full dig on the matter can be found here (http://www.orlandosentinel.com/busi...y?coll=orl-home-headlines&ctrack=1&cset=true). ®

Well, this is really not cutting a guest service. The IT jobs service the company and not the guests. That being said Disney is not an IT company and therefore would be better off using the skills of one that is. I don't see this as a bad thing.

IT does have to do with guest services, everything from Pal Mickeys, to the telephones, guest service computers, guest feedback, web pages, networks for credit card purchases, and even every cash register. All are supported in a way by IT and have direct affect on guests. When I worked there and the cash registers went down it was IT that got them back up and running. With less of them, it will take longer to fix these minor on site problems and cause more delays and frustrations for guests.

I hate to say it, but if jobs must be lost, I am glad it is coming in areas like this that can be outsourced. The best training for these come from other sources (that focus on information technology), so those funds can go back to making the parks and the on-stage staff and management in better shape. I feel for anyone who loses his job, but IT is hot enough that they should be able to find another job quickly, and hopefully WDC will help in that themselves.

DisneyBuff said:

IT does have to do with guest services, everything from Pal Mickeys, to the telephones, guest service computers, guest feedback, web pages, networks for credit card purchases, and even every cash register. All are supported in a way by IT and have direct affect on guests. When I worked there and the cash registers went down it was IT that got them back up and running. With less of them, it will take longer to fix these minor on site problems and cause more delays and frustrations for guests.

Click to expand...

I undertstand this, what I meant was that this change will not be noticed by the guest. There will not be less of them as you say. They will just be turning the operation over to a third party rather than running there own. The guests will not see any reduction in service.

Epcot82Guy said:

I hate to say it, but if jobs must be lost, I am glad it is coming in areas like this that can be outsourced. The best training for these come from other sources (that focus on information technology), so those funds can go back to making the parks and the on-stage staff and management in better shape. I feel for anyone who loses his job, but IT is hot enough that they should be able to find another job quickly, and hopefully WDC will help in that themselves.

Click to expand...

Being an IT person, you are way off base on this one. IT jobs are being outsouced to overseas country, therefore the pool of IT jobs within th US is being reduced.

Call centers, programmers, etc are being shipped to reduce cost. But the trade off is the expertise and cost of quality service.

I think it insensitive for anyone to say, it okay since it doesn't affect me. That is what I hear some people on this thread saying.

Anyone out of work is a bad thing regardless of what field you are in. Think about all the people out of work trying to feed their families.

peter11435 said:

I undertstand this, what I meant was that this change will not be noticed by the guest. There will not be less of them as you say. They will just be turning the operation over to a third party rather than running there own. The guests will not see any reduction in service.

Click to expand...

Employee needing computer service could be reduced with the ending result affecting guest. If a PC goes down and they have to call India to talk to the call center, the guest may have to wait.

Additional software bugs because the programmers are not properly trained effecting the guest bill.

Just one more thing to cut costs and services.
Ugh! What a bunch of jerks!!!

*insert sarcasm*

Computer Magic said:

Being an IT person, you are way off base on this one. IT jobs are being outsouced to overseas country, therefore the pool of IT jobs within th US is being reduced.

Call centers, programmers, etc are being shipped to reduce cost. But the trade off is the expertise and cost of quality service.

I think it insensitive for anyone to say, it okay since it doesn't affect me. That is what I hear some people on this thread saying.

Anyone out of work is a bad thing regardless of what field you are in. Think about all the people out of work trying to feed their families.

Click to expand...

OK. I appologize if the outsourcing is going overseas; I simply assumed they were outsourcing to other companies. However, there are very few people who are not subject to outsourcing of some type in this day and age. Sadly, while it may seem "insensitive," it is a fact of life today. I don't think anyone here is saying that it is okay "because it doesn't affect me." If this is a necessary decision business-wise, then it is necessary. Otherwise, the costs will come from elsewhere which will not work, and jobs will be lost regardless. Again, please note that I fully agree that anyone who loses their job has met a tragic situation. However, cuts are going to be made. It's part of a large corporation. When cuts must be made, it should be done in areas that Disney as a company is not as well equipped to train and maintain. That's all I'm saying.

Computer Magic said:

Employee needing computer service could be reduced with the ending result affecting guest. If a PC goes down and they have to call India to talk to the call center, the guest may have to wait.

Additional software bugs because the programmers are not properly trained effecting the guest bill.

Click to expand...

No where is the article does it say the jobs will going to India. They are turning to two US based companies to handle the operation. Knowing Disney I would highly doubt they will outsource the jobs to India. You can say what you want but many of you have far to cynical a view of the Disney Company.

peter11435 said:

Knowing Disney I would highly doubt they will outsource the jobs to India. You can say what you want but many of you have far to cynical a view of the Disney Company.

Click to expand...

Disney is a huge corporate monster, no different from any other corporate monster that wants to make as much money as possible regardless of the lives it wrecks. Paying people in India a qarter their American conterparts will be seen as an easy way to make more profit.

I believe they have already outsourced teleservices to countries with a lower wage, so there is no reason that they will not do the same with IT.

More worrying, if you examine the causes behind the Wall Street Crash it came about because the employers were paying their workers so little in order to boost profit that the workers could not afford to buy any products or services. Because the workers could not afford to buy any products and services the companies were not getting any money coming in and so they cut wages and so on until it went crash. The same is going to happen if corporate fat cat greed continues to reign supreme.

barnum42 said:

Disney is a huge corporate monster, no different from any other corporate monster that wants to make as much money as possible regardless of the lives it wrecks. Paying people in India a qarter their American conterparts will be seen as an easy way to make more profit.

I believe they have already outsourced teleservices to countries with a lower wage, so there is no reason that they will not do the same with IT.

More worrying, if you examine the causes behind the Wall Street Crash it came about because the employers were paying their workers so little in order to boost profit that the workers could not afford to buy any products or services. Because the workers could not afford to buy any products and services the companies were not getting any money coming in and so they cut wages and so on until it went crash. The same is going to happen if corporate fat cat greed continues to reign supreme.

Click to expand...

I completely agree with you. Disney is there to serve the shareholder. It is the tyranny of the shareholder. Increase the value of my stock. Slash wages, fire employees, outsource jobs, do anything as long as you make a profit and my stock soars. But what happens when those fired workers can't find work because everything is outsourced? Where do we get the money to purchase these products that are now manufactured in other countries? Won't that affect the value of stock if nobody is purchasing your products? Oh, the irony of the marketplace.

peter11435 said:

No where is the article does it say the jobs will going to India. They are turning to two US based companies to handle the operation. Knowing Disney I would highly doubt they will outsource the jobs to India. You can say what you want but many of you have far to cynical a view of the Disney Company.

Click to expand...

<TABLE cellSpacing=0 cellPadding=0 width=580 border=0><TBODY><TR><TD style="PADDING-TOP: 10px" vAlign=top>Disney to outsource 1,000 jobs: paper
<!--startclickprintexclude--></TD></TR><TR><TD vAlign=top><!--endclickprintexclude-->LA Times says IT jobs will move overseas in mid-July; some employees to take jobs with IBM, ACS.
May 13, 2005: 8:03 AM EDT
<!--startclickprintexclude--></TD></TR><TR><TD class=storytext style="PADDING-TOP: 20px" vAlign=top><!-- CONTENT --><!--endclickprintexclude--><!--startclickprintexclude--><TABLE style="PADDING-LEFT: 10px" cellSpacing=0 cellPadding=0 width=220 align=right border=0><TBODY></TBODY></TABLE><!--endclickprintexclude-->NEW YORK (Dow Jones) - Walt Disney Co. plans to outsource about 1,000 jobs in its information technology division to save costs, although the move is expected to result in minimal layoffs, The Los Angeles Times reported in its Friday editions.

<!--startclickprintexclude--><!--endclickprintexclude-->The company told employees in a meeting Thursday that most of the workers would be moved into new jobs with two vendors, International Business Machines Corp. (IBM) and Affiliated Computer Services Inc. (ACS), after negotiations are completed this month, the paper reported.

<!--startclickprintexclude--><!--endclickprintexclude--><SCRIPT language=JavaScript><!--var clickExpire = "-1";//--></SCRIPT>Affected employees are in California, Florida and New York.

<!--startclickprintexclude--><!--endclickprintexclude--><TABLE style="PADDING-LEFT: 10px" cellSpacing=0 cellPadding=0 width=220 align=right border=0><TBODY><TR><TD>
</TD></TR></TBODY></TABLE>Disney (Research) is expected to sign an agreement with the two vendors later this month, with the outsourcing planned to occur in mid-July. The Times reported that some workers may be offered jobs elsewhere at Disney or be laid off, the company told employees, but no numbers were provided.

<!--startclickprintexclude--><!--endclickprintexclude-->Representatives of IBM and ACS declined to comment.

<!--startclickprintexclude--><!--endclickprintexclude-->Dow Jones Newswires 05-13-05 0625ET Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.

</TD></TR></TBODY></TABLE>

barnum42 said:

Disney is a huge corporate monster, no different from any other corporate monster that wants to make as much money as possible regardless of the lives it wrecks. Paying people in India a qarter their American conterparts will be seen as an easy way to make more profit.

I believe they have already outsourced teleservices to countries with a lower wage, so there is no reason that they will not do the same with IT.

More worrying, if you examine the causes behind the Wall Street Crash it came about because the employers were paying their workers so little in order to boost profit that the workers could not afford to buy any products or services. Because the workers could not afford to buy any products and services the companies were not getting any money coming in and so they cut wages and so on until it went crash. The same is going to happen if corporate fat cat greed continues to reign supreme.

Click to expand...

cherrynegra said:

I completely agree with you. Disney is there to serve the shareholder. It is the tyranny of the shareholder. Increase the value of my stock. Slash wages, fire employees, outsource jobs, do anything as long as you make a profit and my stock soars. But what happens when those fired workers can't find work because everything is outsourced? Where do we get the money to purchase these products that are now manufactured in other countries? Won't that affect the value of stock if nobody is purchasing your products? Oh, the irony of the marketplace.

Click to expand...

Very good posts. Overseas outsourcing is a big debate in the US. There are pros and cons for outsourcing jobs. Not being rich like most of us, I get tired of big business tearing from us and shipping jobs overseas. Mostly to line the pockets of borad members and senior management (the elite).

If all these good paying jobs continue to go overseas, people will be left with minimum wage jobs. You always hear one job lost another job will be created. Maybe true but not the same wage scale. Good jobs being replaced by lower paying jobs will create less desposble income to spend on luxary such as Disney. All our money will be spent putting food on the table and cloths on our backs.

It is the American way!

Most Americans want to make the most money that they can. They do this through work and through investing.

Has anyone here ever purchased stocks and thought "I hope this does not perform"? We put the pressure on the American business.

Has anyone ever complained about prices?

Companies must continue to grow because WE make them have that need. They have two options, raise prices, or cut costs.

When WDW switched to Magic Your Way, people in this thread complained that they were greedy for raising prices.

When WDC cuts jobs, people complain that they are greedy for cutting costs.

They are not greedy, they are jsut trying to keep in line with what the Wall Street expections are....and Wall Street's expectations are caused by the investors (also known as US).

Yes, the executives at WDC make a lot more than most of us.....but hey, that is their right. I am sure if you were in that position with that kind of resposibility, you would want a decent paycheck too.

Computer Magic said:

<TABLE cellSpacing=0 cellPadding=0 width=580 border=0><TBODY><TR><TD style="PADDING-TOP: 10px" vAlign=top>Disney to outsource 1,000 jobs: paper
<!--startclickprintexclude--></TD></TR><TR><TD vAlign=top><!--endclickprintexclude-->LA Times says IT jobs will move overseas in mid-July; some employees to take jobs with IBM, ACS.
May 13, 2005: 8:03 AM EDT
<!--startclickprintexclude--></TD></TR><TR><TD class=storytext style="PADDING-TOP: 20px" vAlign=top><!-- CONTENT --><!--endclickprintexclude--><!--startclickprintexclude--><TABLE style="PADDING-LEFT: 10px" cellSpacing=0 cellPadding=0 width=220 align=right border=0><TBODY></TBODY></TABLE><!--endclickprintexclude-->NEW YORK (Dow Jones) - Walt Disney Co. plans to outsource about 1,000 jobs in its information technology division to save costs, although the move is expected to result in minimal layoffs, The Los Angeles Times reported in its Friday editions.

<!--startclickprintexclude--><!--endclickprintexclude-->The company told employees in a meeting Thursday that most of the workers would be moved into new jobs with two vendors, International Business Machines Corp. (IBM) and Affiliated Computer Services Inc. (ACS), after negotiations are completed this month, the paper reported.

<!--startclickprintexclude--><!--endclickprintexclude--><SCRIPT language=JavaScript><!--var clickExpire = "-1";//--></SCRIPT>Affected employees are in California, Florida and New York.

<!--startclickprintexclude--><!--endclickprintexclude--><TABLE style="PADDING-LEFT: 10px" cellSpacing=0 cellPadding=0 width=220 align=right border=0><TBODY><TR><TD>
</TD></TR></TBODY></TABLE>Disney (Research) is expected to sign an agreement with the two vendors later this month, with the outsourcing planned to occur in mid-July. The Times reported that some workers may be offered jobs elsewhere at Disney or be laid off, the company told employees, but no numbers were provided.

<!--startclickprintexclude--><!--endclickprintexclude-->Representatives of IBM and ACS declined to comment.

<!--startclickprintexclude--><!--endclickprintexclude-->Dow Jones Newswires 05-13-05 0625ET Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.

</TD></TR></TBODY></TABLE>

Click to expand...

That article also doesn't say anything about the jobs going to India. Only more qualified companies in the US.

peter11435 said:

That article also doesn't say anything about the jobs going to India. Only more qualified companies in the US.

Click to expand...

I think the first line states that.

LA Times says IT jobs will move overseas in mid-July; some employees to take jobs with IBM, ACS.
May 13, 2005: 8:03 AM EDT

Click to expand...

<!--startclickprintexclude-->

In addition, It's IBM. IBM is good about sending their IT overseas (India). Do a Google search.

barnum42 said:

Disney is a huge corporate monster, no different from any other corporate monster that wants to make as much money as possible regardless of the lives it wrecks. Paying people in India a qarter their American conterparts will be seen as an easy way to make more profit.

I believe they have already outsourced teleservices to countries with a lower wage, so there is no reason that they will not do the same with IT.

More worrying, if you examine the causes behind the Wall Street Crash it came about because the employers were paying their workers so little in order to boost profit that the workers could not afford to buy any products or services. Because the workers could not afford to buy any products and services the companies were not getting any money coming in and so they cut wages and so on until it went crash. The same is going to happen if corporate fat cat greed continues to reign supreme.

Click to expand...

I think you should reread your history books because that had very little to due with the Wall Street Crash. In fact the period before the crash was actually very successful with people buying everything they needed. The real causes for the crash come down to over speculation in the stock market, the development of buying on credit, and the spread of wealth/growth of suburbia/and loss of traditional values of saving associated with the invention of the automobile.

Computer Magic said:

I think the first line states that.
<!--startclickprintexclude-->

In addition, It's IBM. IBM is good about sending their IT overseas (India). Do a Google search.

Click to expand...

I overlooked reading the title and only read the content. It still doesn't change the fact that the process will be turned over to a more qualified corporation and save money at the same time. Anyway you try and spin this it is good for the guest. Just because they save money in the IT department doesn't mean that money will just disappear, it will increase the available funds for other areas. Trying to dispute that is just continuing the cynical view I talked about earlier.

Out scourcing IT work.. sheash... I guess by the time i get my degree they would ahev outsourced their webdesign team as well.... (thought it could have already happened in some cases...)