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Politics 28000 Layoffs coming to Disney's domestic theme parks - statement from Josh D'Amaro

This thread contains political discussion related to the original thread topic

mwf5555

Active Member
I don’t have all the answers (and I’m not going to ask about such a sensitive topic) so would rather not speculate. It’s tragic.
Yes, it’s sensitive especially to this wondering and waiting for which way this is going to go, like me...this is why it would be great to know...
 

DCBaker

Premium Member
Original Poster
About 6,700 Walt Disney World non-union employees are losing their jobs in December, Disney alerted the state after the company announced massive layoffs Tuesday when the market closed.

"The notice to the state is the first indicator of how many Orlando employees are affected. The layoffs begin Dec. 4."

 

DisneyCane

Well-Known Member
How much did they pay Iger again? How much money did DIS sink into their stock? How much did Disney pay for Fox?

This is as ugly as it gets folks!

I know it is always very popular to point to the CEO's pay when these things occur. However, if you took Iger's entire 2018 compensation of $65.6 million and divided it among 28,000 layoffs, that calculates to $2,342.86 per employee laid off. That's maybe 4 weeks of pay including payroll taxes and benefits.

Obviously, the CEO compensation is much lower this year.
 

donsullivan

Premium Member
I know I'll get flamed for this, but for everyone here that wants to write this off as the evil corporate overlords just cutting away and destroying things try an exercise. What if your paycheck was suddenly reduced by 70% and you have no idea if or when it will ever return back to its previous number? Would you not need to cut a lot of costs across the board and get rid of a lot of expenses across the board?
Folks do need to understand that this is what's happening here. WDW and DL have seen a massive drop in income starting back in March and have no idea when it's going back to normal. They don't have any choice but to massively reduce costs and since labor is typically the largest expense in this business, that's what gets hit.
I get that none of us like this but it's the reality of the situation Disney finds themselves in. They are responsible to manage the business and doing so means managing costs to match revenues.
 
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About 6,700 Walt Disney World non-union employees are losing their jobs in December, Disney alerted the state after the company announced massive layoffs Tuesday when the market closed.

"The notice to the state is the first indicator of how many Orlando employees are affected. The layoffs begin Dec. 4."

This makes sense. It will probably be resort cast that haven’t opened and restaurants that haven’t opened.
 

VaderTron

Well-Known Member
I guess on the bright side, the overwhelmingly majority of layoffs are just part time workers
As someone who knows just how hard it is to get a decent part-time job, this is not a bright spot. Those jobs are fairly irreplaceable as most companies that are enjoyable to work for require full-time commitments. Additionally, part-time work is usually lower pay and provides workers with less attractive skills for their next job than a full-time, mid-level or exec job. Basically, you are punishing the most vulnerable group of people. Part-time workers are less likely to have significant savings/investments and more likely to be in debt. Many of these people are likely to be moving onto at least some sort of government support program, face evictions/foreclosures, and become a taker rather than a contributor to their local ecconomy.
 

James122

Well-Known Member
I know I'll get flamed for this, but for everyone here that wants to write this off as the evil corporate overlords just cutting away and destroying things try an exercise. What if your paycheck was suddenly reduced by 70% and you have no idea if or when it will ever return back to its previous number? Would you not need to cut a lot of costs across the board and get rid of a lot of expenses across the board?
Folks do need to understand that this is what's happening here. WDW and DL have seen a massive drop in income starting back in March and have no idea when it's going back to normal. They don't have any choice but to massively reduce costs and since labor is typically the largest expense in this business, that's what gets hit.
I get that none of us like this but it's the reality of the situation Disney finds themselves in. They are responsible to manage the business and doing so means managing costs to match revenues.

Agreed. This isn't a black/white, good/evil type situation. It's a tenuous, complicated position that Disney now finds themselves in with no easy solutions. The parks division have been operating at a massive loss since March, and even now we still don't know when things will be back to 'normal'. As much as we can love to rag on Chapek and the bean counters in corporate, I'm sure this isn't a decision that anyone made lightly.
 
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tirian

Well-Known Member
Maybe disney should think about packing up Disneyland and their headquarters and moving out of Cali
Sadly, their current corporate politics wouldn’t work outside the immediate L.A. area; they’re too invested into the Hollywood Mega-conglomerate model.

This is awful news, but as @marni1971 said, it’s been planned for a while. In most companies, the announcements usually follow 1–2 months of planning.
 

tirian

Well-Known Member
Agreed. This isn't a black/white, good/evil type situation. It's a tenuous, complicated position that Disney now finds themselves in with no easy solutions. The parks division have been operating at a massive loss since March, and even now we still don't know when things will be back to 'normal'. As much as we can love to rag on Chapek and the bean counters in corporate, this isn't a decision that I'm sure anyone made lightly.
I agree.

The company has been bleeding money all year, and only especially naïve people would’ve believed their magically decent earnings report; Disney had obviously pushed numbers around (as most large companies do).

This is extremely complicated, and it’s also why they carefully “leaked” the Fifth Key news last week for good PR.

It’s a no-win situation right now and not a stereotypical case of big bad overlords; the money just isn’t there.
 

tirian

Well-Known Member
hard to preach that sermon when the pastor and executive church staff got full salaries back and new construction projects were announced that the church doesn’t even need.
Announced, yes. Financed, no.

And you can check the Splash, Castle, and Epcot threads to know how much I hate those unnecessary announcements. ;)

I agree about the executive salaries. If they did something worthwhile, my opinion would change, but they’ve been coasting on nostalgia and purchased IPs for almost ten years. Iger spent years atop the annual “Overpaid CEOs” list. I watched fans defend him and his outrageous salary for silly reasons.

But as for these announcements: we can’t entirely blame the execs for the results of Covid. We can blame them for creating a company which overstretched and depended on tentpole films and packed theme parks to stay afloat.

EDIT: There are also American politics involved here (as opposed to corporate politics), but this is the wrong forum for those points. Just remember that no corporate pandering matters when they have to protect the Big Dogs.
 
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HouCuseChickie

Well-Known Member
As much as I hate this, I don't see how it can be avoided. If anything, I'm kind of shocked it didn't happen sooner considering how much business they've lost between closures and reductions. I also have a hard time painting Disney as the villain when scores of companies have had layoffs related to Covid. Anything involving crowds and/or travel have been hit especially hard. Even areas where you don't expect it as much are being hit. Just last night, our local ABC news channel said good-bye to sportscaster who has been with the network since 1998 and it was a Covid related cut. Cuts are everywhere and sometimes sticking it out in a long furlough isn't the answer. I know of a girl whose been with an airline for 15 years, furloughed and told it'll be at least 6 years before she'd be called back to work. It doesn't get any press, but I don't see the same kind of anger over people like my friend who had to shut down her private gym due to Covid and related financial matters. Unfortunately, lots of people need to move on and find something new/reinvent themselves. It's horrible and it's not over either.
 

flynnibus

Premium Member
I know I'll get flamed for this, but for everyone here that wants to write this off as the evil corporate overlords just cutting away and destroying things try an exercise. What if your paycheck was suddenly reduced by 70% and you have no idea if or when it will ever return back to its previous number? Would you not need to cut a lot of costs across the board and get rid of a lot of expenses across the board?
Folks do need to understand that this is what's happening here. WDW and DL have seen a massive drop in income starting back in March and have no idea when it's going back to normal. They don't have any choice but to massively reduce costs and since labor is typically the largest expense in this business, that's what gets hit.
I get that none of us like this but it's the reality of the situation Disney finds themselves in. They are responsible to manage the business and doing so means managing costs to match revenues.

Yup - The business has changed - and they must change to right size for the new business going forward.
 

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