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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

nickys

Premium Member
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They may still be coming. Europe has different labor laws and in China they’re not entirely in charge.
Yep. In Europe they are obliged to give detailed information and consult with unions with a view to reaching agreements. I would estimate the process would take around 3 months and then thee are rules around notice periods or pay in lieu. Plus there are statutory redundancy payments for anyone who has worked there for more than 6 months.

On top of which France have a jobs support package that I believe is continuing for the rest of the year.
 
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Seanual757

Well-Known Member
We will see more layoff's it's just the start.

Air Travel is not going to recover enough for folks to travel easily as they did in the past. We are a leisure market yields are too low to increase the number of seats in the Central Florida market.

-Conventions are not returning anytime soon.

-Travelers from overseas cannot travel nor do that want to at this time. You can expect a ban to the US to last until Spring/Summer 2021.

-Travelers from Canada and Mexico cannot travel to the US.

Add the uncertainty of the economy and peoples jobs these are expenses most can do with out to ensure they can pay bills.

Experts are now saying we may be living with Covid for the next 2-3 years and we will need to adapt to the current way of life for many more years.

What does this mean for Disney nothing but bad news and I expect we will see the bare bones number of CM’s per day at the parks and resorts. Disney will need to turn into survival mode in the next 12 months if attendance continues at this pace.
 

note2001

Well-Known Member
This is sad. All because of a virus that is out of our control... Just take a step back and think about it. Never would have thought this was possible 10 months ago

We will see more layoff's it's just the start.

Air Travel is not going to recover enough for folks to travel easily as they did in the past. We are a leisure market yields are too low to increase the number of seats in the Central Florida market.

-Conventions are not returning anytime soon.

-Travelers from overseas cannot travel nor do that want to at this time. You can expect a ban to the US to last until Spring/Summer 2021.

-Travelers from Canada and Mexico cannot travel to the US.

Add the uncertainty of the economy and peoples jobs these are expenses most can do with out to ensure they can pay bills.

Experts are now saying we may be living with Covid for the next 2-3 years and we will need to adapt to the current way of life for many more years.

What does this mean for Disney nothing but bad news and I expect we will see the bare bones number of CM’s per day at the parks and resorts. Disney will need to turn into survival mode in the next 12 months if attendance continues at this pace.
The Spanish Flu pandemic that swept through 100 years ago kept people home and wearing masks for over 2 years. Hopefully we can beat that number, but this thing still has not revealed all its secrets. There is no magic shot to make this go away and there won't be a safe one until mid 2021 if they are tested properly.

I expect the layoffs to cause continuation of the cuts we've already seen in the parks: no parades, reduced food locations (odd that they're reopening some, but I think that's in response to demand) and some retail locations will be closed. 28,000 is a huge number, but we do what we must to secure our residence, and in this case it's the Disney brand and shell. The worst case would be shuttering entire parks, most likely starting with Animal Kingdom, potentially moving the most expensive animals to maintain elsewhere. That is a scary thought and I don't want to see them get that bad as it's my favorite park.

This move, while painful is the best option at the moment.
Well, add to that, the top execs could go a year on minimum wage without a bonus.
 

CaptainAmerica

Premium Member
That seems like a lot of non-union employees. How many does WDW even have? I've seen numbers around online for total CMs at WDW (77,000) but I don't know if that includes all back of house staff or just guest facing. And I think there are 40k-50k union employees? That's real bad math for non-union staff if it's right (18%-24% of non-union employees)
Union employees and union-eligible employees are not the same thing.
 

note2001

Well-Known Member
Just in case you think Disney is "suffering", DIS closed down around....0.96%.

Yeah, not exactly a big drop. Said it once and I'll say it again: the parks will be fine, the employees will not.
Honest question: Why would you expect to see a large drop after a layoff announcement? The whole point is to retain or restore balance on the books. That's what investors want to see.
 

Slpy3270

Well-Known Member
Honest question: Why would you expect to see a large drop after a layoff announcement? The whole point is to retain or restore balance on the books. That's what investors want to see.
If that were the case the stock wouldn't have dropped ~2% after-hours following the announcement.

My guess this drop was related to the stimulus talks failing more than anything else.
 

UNCgolf

Well-Known Member
I’ve pointed out before your rather large exaggeration of what the EMTALA law requires. You seem not to have read it as I suggested. Please don’t spread false information when it comes to peoples health.

He's not completely wrong, although saying taxpayers fund the bill is pretty inaccurate and not every hospital is required to abide by EMTALA. It's really the insured that subsidize the uninsured, which part of the reason health insurance premiums are so high. The whole system is broken.
 

monothingie

Hater of giant Epcot tacos but lover of real tacos
Premium Member
What does this mean for Disney nothing but bad news and I expect we will see the bare bones number of CM’s per day at the parks and resorts. Disney will need to turn into survival mode in the next 12 months if attendance continues at this pace.

It's funny because you hear more and more anecdotal evidence from reliable park watchers that the parks feel more crowded and busier every week. Yet no change in park reservation system, and people in the know say that no increase in attendance caps have been made.
 

Rosso11

Well-Known Member
Honest question: Why would you expect to see a large drop after a layoff announcement? The whole point is to retain or restore balance on the books. That's what investors want to see.

The news of the layoffs was not taken as good news for the stock. The market’s view from this is that Disney is doing worse than they are letting on and that internally Disney believes the recovery is going to be long since they let go so many people. The market was up big today but Disney was one of the few stocks down.
 
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GusEzra

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.
Many companies are doing the same thing as Disney all over the country they all have accelerated their plans from multi year plans to this year, there is too many unknowns right now in the world and all companies are taking the pandemic excuse to get "right sized" for the future, since we didn't hear about rumblings abut a massive layoff being a possibility ( i find it hard that if this was just a result of current events word would have leaked that this was coming cause to figure out a roster cut of this size takes some big effort) with Disney leads me to believe this was already mapped out over a few years and they just moved it to the right.
 

Timmay

Well-Known Member
He's not completely wrong, although saying taxpayers fund the bill is pretty inaccurate and not every hospital is required to abide by EMTALA. It's really the insured that subsidize the uninsured, which part of the reason health insurance premiums are so high. The whole system is broken.
Correct that only participating CMS organizations follow EMTALA, which requires an appropriate medical screening and then stabilization of an emergency medical condition. Although when able, some hospitals will treat non emergency medical conditions, they are under no legal obligation to do so.
 

UNCgolf

Well-Known Member
Correct that only participating CMS organizations follow EMTALA, which requires an appropriate medical screening and then stabilization of an emergency medical condition. Although when able, some hospitals will treat non emergency medical conditions, they are under no legal obligation to do so.

Indeed. But the vast majority of hospitals in the US are CMS organizations; only a small number aren't required to follow EMTALA.
 

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