Labor cost cutting measures begin at Walt Disney World as the company enters Q1

[Andrew C]

But if things were better, more shows and Disney hospitality like it used to be more folks would come.

Not really. Travel is still very much struggling. This is not isolated to WDW.

 

[Trauma]

I blame KiteTails.

 

[peter11435]

But if things were better, more shows and Disney hospitality like it used to be more folks would come.

That’s debatable and not really accurate. Right now all indications are that lower attendance is being driven my Covid fear, economic impacts, and loss of international travel. Just like what is negatively impacting all sectors of travel and tourism. Disney’s lowered standards does not appear to be a factor….. yet.

 

[Andrew C]

Disney’s lowered standards does not appear to be a factor….. yet.

Eventually, maybe? lol

 

[peter11435]

If they don’t wake up….

 

[dreday3]

When does their first quarter begin? Did it start October 1?

Feel bad for all losing jobs. That's a big blow when you think life is getting back to normal.

 

[networkpro]

From what we observed last week (with the exception of Friday the 1st) with low wait times for all attractions and no lightning lane or individual ride FoPs available, there isn't sufficient demand to support lots of staff. So All-Star Sports isn't open... well they can't fill the already opened ones. It's kind of eerie to walk through the Emporium mid-afternoon and there are more visible cast members than there are customers. The in-demand table service and Boma reservations are all taken, but thats always a given since they also attract locals looking for a different meal.

 

[CaptainAmerica]

Can Merch cast be trained as line cooks and housekeepers?

 

[CaptainAmerica]

Anyone know if Disney makes cuts to film/TV/ESPN? Why do parks always get hit the worst, even in times when the company does well.

It seems as if parks are the easy punching block because they are day to day operations.

Parks is the only business with a meaningful number of part-time workers. Cutting part-timer hours is a lot easier than layoffs.

 

[ToTBellHop]

Can Merch cast be trained as line cooks and housekeepers?

Anyone can cook.

 

[CaptainAmerica]

The in-demand table service and Boma reservations are all taken, but thats always a given since they also attract locals looking for a different meal.

And those places (Boma, Ohana, etc.) are the ones that actually need MORE staff, but they need experienced line cooks.

 

[peter11435]

When does their first quarter begin? Did it start October 1?

Feel bad for all losing jobs. That's a big blow when you think life is getting back to normal.

Nobody is losing jobs because of this. Just getting less hours.

 

[lewisc]

After 9-11 Disney realized guests didn't feel safe traveling, no matter what discounts were offered. Entire resorts, and sections of resorts, were mothballed.

This is different. Safety concerns are real. I agree with PP. Restoring shows isn't going to attract guests. Vaccination approval for all ages might help. Should make guests feel safe. Allow removal of mask restrictions.

 

[CaptainAmerica]

When does their first quarter begin? Did it start October 1?

Feel bad for all losing jobs. That's a big blow when you think life is getting back to normal.

Yesterday, October 3.

Fiscal Year runs October-ish through September-ish, but quarters always end on Saturday and start on Sunday. Every few years, they have a fiscal year that's 53 weeks long to make up for the fact that 52 weeks is only 364 days.

4–4–5 calendar - Wikipedia

en.wikipedia.org

 

[drizgirl]

Not surprised. I assumed they were already doing this and it would continue. Times are still tough right now for travel and tourism. And then add on top of that the company's other obligations...

You mean like that Disney+ thing that raked in the cash over the course of the pandemic?

I get it. Hard times in other divisions always impact the parks. Good times in other divisions don't. Like all of that Shanghai Disney stuff. Cuts at the domestic parks when costs were too high in the building phase. But no returns back to the domestic parks when the profits started rolling in.

 

[CaptainAmerica]

You mean like that Disney+ thing that raked in the cash over the course of the pandemic?

Disney+ did not rake in cash, Disney+ raked in subscribers. They spent a fortune on their ramp-up of content production. Disney+ lost huge amounts of cash.

 

[Andrew25]

... and people thought the 50th would be packed.

 

[peter11435]

You mean like that Disney+ thing that raked in the cash over the course of the pandemic?

That’s not really an accurate representation of the situation. Disney+ was certainly bringing in large amounts of revenue but not enough to cover its own start up and operating costs and make a profit. And then you had entire segments of the company entirely shut down and unable to make any revenue.

 

[castlecake2.0]

As a former merchandise leader, there have been numerous times the last few weeks I’ve been in stores and thought “omg they have way too many people working”. Also seen lots of cast at food and wine just standing there trying hand maos to people. So I can see some areas being asked to reduce labor, but I REALLY hope that doesn’t include custodial. Reducing labor isn’t always a bad thing, it’s good to get leaders to really look at the operation and see if they’re utilizing the cast in best possible way.

 

[CaptainAmerica]

This is different. Safety concerns are real. I agree with PP. Restoring shows isn't going to attract guests. Vaccination approval for all ages might help. Should make guests feel safe. Allow removal of mask restrictions.

The problem is, pleasing one group of guests drives away the other group of guests. The COVID-fearful want more restrictions so they feel safe. The COVID-fatigued want zero restrictions so they can feel normal. It's lose-lose.

Disney won't get the COVID-fatigued back until there's no more masking (including on the airlines) and they won't get the COVID-fearful until the pediatric vax is out, and maybe not even then.