Those 200 WDI cast relocated from CA to FL for the Lake Nona campus project now cancelled are still on the payroll. ....
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News Bob Iger outlines the need to transform the Walt Disney Company resulting in 7000 job losses and $5.5 billion in cost savings
- Thread starter wdwmagic
- Start date
lazyboy97o
Well-Known Member
Why are you so eager to see those people let go?
Nice assumption. What would Disney find in terms of work if their project is no longer a Go.
lazyboy97o
Well-Known Member
Their project wasn’t designing the Lake Nona campus. Parks, Experiences and Products still has a corporate presence in Florida with offices at Walt Disney World and Celebration.
Tha Realest
Well-Known Member
Don’t look now, but DIS is already down 2% shortly after opening. About to drop into the 80’s again.
Slpy3270
Well-Known Member
They're not anymore.
Nubs70
Well-Known Member
Yes, I understand that.
All the talking heads are chalking this up to a political tit for tat when in reality DIS is in a cost reduction phase that would require an additional $1B cuts in redundancies to build a $1B redundant office complex.
DopeyRunner
Active Member
The decision to move the staff should really be viewed from a long term perspective. I did a quick search for CoL difference between Glendale and Orlando, just as a reference, and came up with an ~45% difference.
For some napkin math, let’s assume that the original 2000 people move, and salaries are adjusted according to the 45% number above. If the average salary in CA is 150000, that’s a savings of about 67,500/person. That would save about $135 million/year in salary costs (assuming a lateral move in overhead costs, which should also decrease). That’s an approximate 8 year payback period, although the true value calculations would be significantly more complex.
Napkin math aside, very few publicly traded companies would dare forsake upfront profit for long term returns, so the cancellation makes sense. Even if the true payback period was 5 years (extending the savings through reduced overhead and tax savings), it’s likely still too “long term” given the strange market conditions we are seeing. The political back and forth is just the save-face for the company, as it’s easy to hide behind and allows them to attack while still appearing to be in the right.
Nubs70
Well-Known Member
The moves DIS is making are consistent with future storm clouds in respect to earnings I that they are executing cost reduction and cash preservation strategy.
Ayla
Well-Known Member
If they took a pay cut and moved to FL, they're even dumber than I thought.
The $5.5 billion in cost reductions are yearly savings in annual costs while the $1 billion campus construction costs are a one time cost.
Vegas Disney Fan
Well-Known Member
Staggering sums of money.
Sir_Cliff
Well-Known Member
I never understand why people lap this stuff up. Not just on the Internet, but in certain corners of the media as well.
Do people get some sort of weird pleasure in believing that the world is constantly going to hell in a hand basket with ultimate doom right around the corner?
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BlakeW39
Well-Known Member
If you're truthfully wondering, then I really just think it's part of our nature. When Trump was president we all saw the same stuff from the other side (and I in no way voted for Trump)
Andrew C
You know what's funny?
Also, click-bait headlines on YouTube are almost a must at this point in order to drive traffic. I blame YouTube itself TBH. They created the monster with their incentives/algorithms.
BlakeW39
Well-Known Member
oh no doubt, rage bait is a social media thing. Disney gets caught up in political stuff (and anti-consumer business strategies) a lot as well so it's no surprise they catch their fair share of it.
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Deadline reporting the third wave of layoffs has started.
"The third wave of layoffs at Disney got under way today, sources tell Deadline.
It is estimated to effect around 700 employees across the board at the company, we’re told. While Parks and Resorts remain mainly untouched, the pink slipping this week isn’t aimed at any particular division. We hear television, which was hit hard in the second round, is largely spared this time with a small number of layoffs, we hear.
Following the timeline of cuts Disney CEO Bob Iger confirmed in late March, this is expected to be the last of the significant layoffs at Disney for a while. However, there many still be some smaller cuts in the next couple of months, sources say."
Full article below.
deadline.com
"The third wave of layoffs at Disney got under way today, sources tell Deadline.
It is estimated to effect around 700 employees across the board at the company, we’re told. While Parks and Resorts remain mainly untouched, the pink slipping this week isn’t aimed at any particular division. We hear television, which was hit hard in the second round, is largely spared this time with a small number of layoffs, we hear.
Following the timeline of cuts Disney CEO Bob Iger confirmed in late March, this is expected to be the last of the significant layoffs at Disney for a while. However, there many still be some smaller cuts in the next couple of months, sources say."
Full article below.
Disney Begins Third Round Of Planned Layoffs – Update
EXCLUSIVE, updated with more details: The third wave of layoffs at Disney got underway today, sources tell Deadline. Rising from the earlier information, the cuts are estimated to affect more than 2,500 jobs across the board at the company, we’re now told. While Parks and Resorts remains mainly...
deadline.com