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

[Sirwalterraleigh]

Your head is buried deep into the "Parks fan" sand.

Feature films and linear television were in a tailspin long before COVID. Parks and DTC are the future. Studio is now a content factory for DTC.

I have to agree

 

[Sirwalterraleigh]

The vast majority of people I work with are Senior Directors or VPs. They're normal people.

I don’t think you can apply that across the entire business spectrum. Definitely more case by case.

The two VPs near my office (if I go there) are the nicest people in the universe...the one down the haul (hall...though in his case, “haul”
Works better) has bounties on him - I do believe.

 

[Stevek]

Demand will return to normal. You're right, it might take some time, and it might look different, but there's nothing broken with the business of providing experiences to people. Certainly nothing caused by the temporary pandemic. People will always want vacations.

And people are going to want them even more than ever as they feel safe to travel. I personally believe that air travel, hotels, theaters, theme parks, anything entertainment related...all are going to do booming business once we get through this.

 

[flutas]

The Knotts Berry portion that is open is the equivalent to Downtown Disney on a much smaller scale. I don't even think it requires employees at a turnstile.
And Downtown is also currently operating at a phased opening.

The entire park is open on weekends for paid admission food festivals. Just no rides.

They've also raised the price three times now and it still has sold out each time. This time so fast that they added Thursdays as well.

 

[Sirwalterraleigh]

And people are going to want them even more than ever as they feel safe to travel. I personally believe that air travel, hotels, theaters, theme parks...all are going to do booming business once we get through this.

The WaPo front page Story today is a study that suggests that the covid “recession” will be a massive boon to the highest earners (heard that before?) while being “worse than net effects of the Great Depression” to the bottom 80%...

...I’d rethink your stance, Mr. Sunny

 

[el_super]

Go ask the Hollywood press doomsaying Disney's future if they're "crazy".

They are trying to sell papers. Disney has some deep challenges to be sure, but its not as if movies and theme parks will cease to exist in the new world order.

The Knotts Berry portion that is open is the equivalent to Downtown Disney on a much smaller scale. I don't even think it requires employees at a turnstile.
And Downtown is also currently operating at a phased opening.

Knott's is selling tickets for their event so I would imagine they have someone running a turnstile (I haven't been myself).

Downtown Disney has been hitting the capacity restriction they implemented, off and on, and they've been looking at ways to increase capacity (using empty buildings for temp merch space).

The two biggest drawbacks for Disney opening for a food event ala Knott's, is cost and value. The cost of the labor for Disney to do anything is far beyond what most normal businesses would have to spend. Knott's can get away with it, because their have a barebone workforce that is being paid close to minimum wage. A couple hundred people could probably run the park. At Disney, operating food booths would require additional ticket takers, security, parking, distribution, runners, chefs, line cooks, food prep, cashiers... it's a lot of people being paid a decent union wage. So the amount they would have to charge, to cover their labor costs, while working within the capacity limitations, would probably not make for a viable product the market would see valuable.

That really only covers the first item cost. I think that Disney still sees immense value in the ability to enter their parks, and selling a chance to enter Disneyland and walk down Main Street for $40 or $50 isn't in line with what they think that experience is worth. They wouldn't want to undervalue the chance to enter the park, when they know they will need to sell full day admission tickets and annual passes once they have the approval to do so. Opening now at a severe discount, would hurt future sales.

But the point of this is to show that, both of those are decisions that Disney would weigh and determine on their own. Not something being implemented by the state government. It might not make economic sense to open in a similar fashion as Knott's, but they are not restricted in doing so.

 

[Stevek]

The entire park is open on weekends for paid admission food festivals. Just no rides.

They've also raised the price three times now and it still has sold out each time. This time so fast that they added Thursdays as well.

We went once, thought it was very well run and felt safe the whole time. Unfortunately it was 105 that day so we couldn't manage staying for very long nor could we manage to eat 5 tastings worth of food...portions were pretty good sized. They've got to be making pretty good money off this, kudos for them thinking out of the box.

 

[CaptainAmerica]

I don’t think you can apply that across the entire business spectrum. Definitely more case by case.

The two VPs near my office (if I go there) are the nicest people in the universe...the one down the haul (hall...though in his case, “haul”
Works better) has bounties on him - I do believe.

Right I'm not saying "all executives are awesome." They're equally likely to be [butts] as any other person.

 

[TrainsOfDisney]

No offense, but people who say stuff like this have never met an exec in their lives. It is absolutely devastating to be the person who has to pull the trigger on something like this.

No offense, but you don’t know who I have or have not met.

The entire park is open on weekends for paid admission food festivals. Just no rides.

They've also raised the price three times now and it still has sold out each time. This time so fast that they added Thursdays as well.

Exactly.

Disney could have the parks ”open” and be making money with them if they wanted to. They are choosing to keep the gates closed , and then blaming the government for the layoffs.

 

[Stevek]

The WaPo front page Story today is a study that suggests that the covid “recession” will be a massive boon to the highest earners (heard that before?) while being “worse than net effects of the Great Depression” to the bottom 80%...

...I’d rethink your stance, Mr. Sunny

Could very well be. Time will tell as it's very possible some segments do better with different folks. Theaters seem to be the low hanging fruit given the lower out of pocket cost.

 

[TrainsOfDisney]

We went once, thought it was very well run and felt safe the whole time. Unfortunately it was 105 that day so we couldn't manage staying for very long nor could we manage to eat 5 tastings worth of food...portions were pretty good sized. They've got to be making pretty good money off this, kudos for them thinking out of the box.

Who’s leading that organization anyway?
Boy if Disney ever had a leader like that they really should hold on to them.

 

[Patcheslee]

The entire park is open on weekends for paid admission food festivals. Just no rides.

They've also raised the price three times now and it still has sold out each time. This time so fast that they added Thursdays as well.

Wow, I'd be kinda ticked to be a passholder and still need to buy tickets. The other Cedar Fair locations are including quite a bit of the activities and the tasting card isn't required for admission.
Does Knotts normally require more $ for fall activities?

 

[Stevek]

Who’s leading that organization anyway?
Boy if Disney ever had a leader like that they really should hold on to them.

I think we all miss Cast Member Matt

 

[Stevek]

Wow, I'd be kinda ticked to be a passholder and still need to buy tickets. The other Cedar Fair locations are including quite a bit of the activities and the tasting card isn't required for admission.
Does Knotts normally require more $ for fall activities?

Beyond Haunt, no. That being said, they have taken care of the APs who a) get a discounted price for this should they wish to attend b) have had their passes extended through 2021 if I remember correctly. As a former Knotts AP, I would have zero issue with this upcharge event.

 

[Riverrafter21]

The WaPo front page Story today is a study that suggests that the covid “recession” will be a massive boon to the highest earners (heard that before?) while being “worse than net effects of the Great Depression” to the bottom 80%...

I don't think 80% will be economically unable to travel once things fully open. I do however agree with the severity of the long term effects.

I think many families will travel on the back of credit, which is essentially a band-aid on an ax wound

 

[LittleBuford]

I think since 2001 the general Disney audience have grown to accept less. Even in the DCA / WDSP era standards were on the whole higher. Since then there’s a mentality that it must be good because we’ve been told it is. IMHO of course.

I really disagree with the bolded. My most enjoyable trips to WDW have been my most recent, and that isn’t because I’m mindlessly following Disney’s spin (I’ve visited in 1991, 1996, 2001, and several times since 2017). As you yourself acknowledge, it’s ultimately a matter of opinion, and while most people who post here seem to agree with you that the experience has significantly declined over the years, some of us genuinely feel differently.

That said, it’s impossible to be positive about these tragic layoffs and their wider implications. On that I think we can all agree.

 

[Sirwalterraleigh]

I don't think 80% will be economically unable to travel once things fully open. I do however agree with the severity of the long term effects.

I think many families will travel on the back of credit, which is essentially a band-aid on an ax wound

It’s not an “elimination” of travel...it’s small, but significant reductions to Disney’s take across the board that will crunch their revenues/profits and anger their stock lords.

That comes back on every traveler...through reductions now and “revenge” price increase as things loosen

 

[Riverrafter21]

crunch their revenues/profits and anger their stock lords.

I wish I could "like" this post more than once

 

[homerdance]

Demand will never return to normal, and even if it did it would take probably a decade to do that. We don't even know if Disney will still have a theme park division by then. Or if activist investors don't break the company up a la Time Warner.

Look at Universal. Thanks to an activist investor trying to buy more shares in the company, there's a possibility NBCUniversal may not even have a theme park unit within the next year or so.

Demand will return to normal within a year of either a vaccine or a treatment. It will be longer for the record breaking numbers.

But most of these jobs are likely gone forever, and these cuts had been “tossed around” pre COVID, maybe not this deep though.

 

[TrainsOfDisney]

My most enjoyable trips to WDW have been my most recent, and that isn’t because I’m mindlessly following Disney’s spin

There have been ups and downs. The skyliner, Epcot arts festival, DAK enhancements, etc. have all be very impressive and have led me to having wonderful trips recently as well.

I was also looking forward to the new Cirque show and ratatouille ride.