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

[flutas]

Regarding cuts, especially ones that were 'in the works' prior to Covid... have we heard any noise lately about completely (or partially) outsourcing any departments? I know that's a trick that's been in Disney's playbook in the past, but probably one that union contracts don't allow them to take as far as they might wish.

I may be wrong, but I believe Yellow Shoes is entirely gone and outsourced to 3(?) different ad agencies now.

 

[rio]

Not if attendance levels don't improve dramatically. Before the pandemic Universal was rapidly growing its attendance levels while Disney's were generally flat. Galaxy's Edge did nothing to improve those levels.

As the top dog of theme parks, that's not a healthy position to be in.

I personally don’t think we’re going to get significant real increases in overall attendance until you stress the capacity bottleneck that is the MK. It’s effectively a multi day park non-pandemic, and the one people feel they must visit on a trip. The best they can hope for is spreading out crowds to their other experiences.

 

[Lilofan]

Regarding cuts, especially ones that were 'in the works' prior to Covid... have we heard any noise lately about completely (or partially) outsourcing any departments? I know that's a trick that's been in Disney's playbook in the past, but probably one that union contracts don't allow them to take as far as they might wish.

If it's non union, it is easy to outsource . No negotiations with unions needed. Plus outsourcing companies that work for Disney cover their own people with their own health insurance. If an outsource employee gets hurt on the job, Disney doesn't have to pay their workers compensation injuries.

 

[FullSailDan]

I may be wrong, but I believe Yellow Shoes is entirely gone and outsourced to 3(?) different ad agencies now.

Yellow shoes still exists. Not surprising they use multiple ad agencies, most companies do especially in the digital space. I help large companies comply with privacy rights laws and inevitable have to do quite a bit of work in digital marketing and advertising. It’s always the most complicated portion of my job due to the number of partners most companies leverage in this space. It’s complicated... and creepy.

 

[ImperfectPixie]

Can someone please explain what in the blue blazes Yellow Shoes is?

 

[donsullivan]

Can someone please explain what in the blue blazes Yellow Shoes is?

The language I've seen used most often is 'Yellow Shoes is tasked with creating breakthrough advertising and design for all of the global Disney Destination brands, including Disney Parks, Adventures by Disney, Disney Vacation Club and Disney Cruise Line and Aulani'

They are essentially like an internal advertising and creative firm for the Parks & Resorts division of Disney. It's a combination of copyrighters, artists, photographers, videographers, and the support staff surrounding that.

 

[ImperfectPixie]

The language I've seen used most often is 'Yellow Shoes is tasked with creating breakthrough advertising and design for all of the global Disney Destination brands, including: Disney Parks, Adventures by Disney, Disney Vacation Club and Disney Cruise Line and Aulani'

They are essentially like an internal advertising and creative firm for the Parks & Resorts division of Disney.

Thank you! I thought it might be something like that, but wasn't sure.

 

[Polite]

We just had a trip to Walt Disney World and stayed on property. Normally we receive an email and text message when our room is ready; however, we never received it. We finally stopped by the lobby a little after 4:00 to check on the status of our room and there were several other folks inquiring about their rooms as well. The Cast Member I spoke with at the desk mentioned that it is taking longer to turn over rooms and that a manager has to approve the room when it is ready. He shared that there are only 3 managers for this particular property, so it takes a while to get completed rooms updated in the system.

I wonder how long it will take for guest satisfaction ratings to take a hit before Disney makes changes. I feel badly for the folks who lost their jobs. Those who still have their jobs are fortunate; however, I can't imagine how much harder they are having to work now with fewer, fellow Cast Members to help carry the burden. It was nice seeing some of the friends we've made over the years still here creating magic, hoping things get better for the Cast soon.

 

[JoeCamel]

We just had a trip to Walt Disney World and stayed on property. Normally we receive an email and text message when our room is ready; however, we never received it. We finally stopped by the lobby a little after 4:00 to check on the status of our room and there were several other folks inquiring about their rooms as well. The Cast Member I spoke with at the desk mentioned that it is taking longer to turn over rooms and that a manager has to approve the room when it is ready. He shared that there are only 3 managers for this particular property, so it takes a while to get completed rooms updated in the system.

I wonder how long it will take for guest satisfaction ratings to take a hit before Disney makes changes. I feel badly for the folks who lost their jobs. Those who still have their jobs are fortunate; however, I can't imagine how much harder they are having to work now with fewer, fellow Cast Members to help carry the burden. It was nice seeing some of the friends we've made over the years still here creating magic, hoping things get better for the Cast soon.

Sounds like they could fill a room inspector position.

 

[Ldno]

Me personally, I'm trying to figure out how they thought massively reducing staff made good business sense (long term, obviously short term it does because it reduces costs and raises profitability). Most of these cuts are permanent, and in the works pre-Covid.

Which means they somehow thought it was acceptable to reduce staff in conjunction with a variety of measures designed to increase attendance: new resorts, epcot overhaul, several big ticket attractions just built and on the way. so they want to pack in people over the next 5+ years with far less staff to assist? I have to imagine guest satisfaction would take a huge dive. Do they just not care?

...this train of thought is not counting what Covid has done to attendance of course.

It does actually. Having worked in corporate America, all they want to do is get rid of low pay workers so they can outsource them for their cheaper counterparts, TPP was just the beginning, they want to say and come out by being friendly to the host country then outsource your work be a contractor or third party agency. Corporate just wants to keep their numbers low. Not just disney but basically any company in the Fortune 500 is going towards the same route of “globalization“

Hence WHY no matter who you call for customer service will always be someone in southeast asia, and don’t be surprised when disney starts doing the same. I lived through layoff’s and furloughs, they are just excuses to get rid of unwanted workers. Disney already tried to replace photopass workers with Booths, the guest services service experience is being shrunk, these times are perfect for disney going forward in how they can operate and run the parks with minimal staff and suffice it to say it’s working for them, too good in fact. It will not go away any time soon.

Iger does not think the parks are an ongoing business. He has said so. I would not put it past him whispering the other BoD member's ears that this is an excellent time to spin off.
I know but I can't help speculating

I am 100% sure he’s rethinking this so bad right now. LOL. When Disney Studios was killing it in the movie business, no doubt for sure, but they can’t even come Close to that now, here comes the parks to the rescue, it’s kind of hilarious seeing them panic over it also since they have no idea what to really do now, especially thinking they had it in the bank with this whole “If you build it they will come” Idea But it’s way worse than that, you know it’s bad when Disney finally agreed upon Apple’s term to finally agreed to selling their movies at Apple’s pricing for 4k!!!

 

[Lilofan]

We just had a trip to Walt Disney World and stayed on property. Normally we receive an email and text message when our room is ready; however, we never received it. We finally stopped by the lobby a little after 4:00 to check on the status of our room and there were several other folks inquiring about their rooms as well. The Cast Member I spoke with at the desk mentioned that it is taking longer to turn over rooms and that a manager has to approve the room when it is ready. He shared that there are only 3 managers for this particular property, so it takes a while to get completed rooms updated in the system.

I wonder how long it will take for guest satisfaction ratings to take a hit before Disney makes changes. I feel badly for the folks who lost their jobs. Those who still have their jobs are fortunate; however, I can't imagine how much harder they are having to work now with fewer, fellow Cast Members to help carry the burden. It was nice seeing some of the friends we've made over the years still here creating magic, hoping things get better for the Cast soon.

Guest satisfaction surveys could be on hold. The survey teams that interview guests on property were part of the layoffs.

 

[Jrb1979]

It does actually. Having worked in corporate America, all they want to do is get rid of low pay workers so they can outsource them for their cheaper counterparts, TPP was just the beginning, they want to say and come out by being friendly to the host country then outsource your work be a contractor or third party agency. Corporate just wants to keep their numbers low. Not just disney but basically any company in the Fortune 500 is going towards the same route of “globalization“

Hence WHY no matter who you call for customer service will always be someone in southeast asia, and don’t be surprised when disney starts doing the same. I lived through layoff’s and furloughs, they are just excuses to get rid of unwanted workers. Disney already tried to replace photopass workers with Booths, the guest services service experience is being shrunk, these times are perfect for disney going forward in how they can operate and run the parks with minimal staff and suffice it to say it’s working for them, too good in fact. It will not go away any time soon.

I am 100% sure he’s rethinking this so bad right now. LOL. When Disney Studios was killing it in the movie business, no doubt for sure, but they can’t even come Close to that now, here comes the parks to the rescue, it’s kind of hilarious seeing them panic over it also since they have no idea what to really do now, especially thinking they had it in the bank with this whole “If you build it they will come” Idea But it’s way worse than that, you know it’s bad when Disney finally agreed upon Apple’s term to finally agreed to selling their movies at Apple’s pricing for 4k!!!

Part of that is they are in worse financial shape then a lot of people think. What's even worse is many Disney fans out their fingers in their ears cause they don't want to hear it.

 

[MisterPenguin]

Guest satisfaction surveys could be on hold. The survey teams that interview guests on property were part of the layoffs.

True, but surveys have been moving to online for a long time now. Disney knows when you've tapped into a park. They can theoretically track every ride you've been on, tho, aside from the automatic photos and Story Maker rides, I don't know if they wired up all rides for 'far' detection of MagicBands.

I'd get email surveys after attending the Halloween and Christmas party nights.

 

[GymLeaderPhil]

To echo earlier comments, Disney absolutely does have contingency plans that they can enact in the event labor unions call for a strike to use cheaper, contracted labor.

However, given the even more problematic employment situation, the members and union representatives are unlikely to do that. It would also be horrible optics for Disney to layoff people during a pandemic to immediately replace them - like SeaWorld did.

Additionally, given the existing contracts with the unions, this would take much more time for them to eliminate all positions in a given job class that are considered essential/core to operating the business. Gradual cuts, sure, that’s feasible. Complete removal of all of the janitors, wait staff, and parking lot attendants? Not so much.

I would watch to see what agreements Disney and each individual union comes up with since this would signal if they are doing the groundwork to use third party employees.

 

[Lilofan]

To echo earlier comments, Disney absolutely does have contingency plans that they can enact in the event labor unions call for a strike to use cheaper, contracted labor.

However, given the even more problematic employment situation, the members and union representatives are unlikely to do that. It would also be horrible optics for Disney to layoff people during a pandemic to immediately replace them - like SeaWorld did.

Additionally, given the existing contracts with the unions, this would take much more time for them to eliminate all positions in a given job class that are considered essential/core to operating the business. Gradual cuts, sure, that’s feasible. Complete removal of all of the janitors, wait staff, and parking lot attendants? Not so much.

I would watch to see what agreements Disney and each individual union comes up with since this would signal if they are doing the groundwork to use third party employees.

Workers in Disney may want to rethink before going on strike if they still want to be employed. Is there a no strike clause in WDW?

 

[Ldno]

Workers in Disney may want to rethink before going on strike if they still want to be employed. Is there a no strike clause in WDW?

I know texas is an At Will State, i have to do my research with Florida Unions but wouldn’t be surprised if they do, I mean that’s the problem with union workers anyways, half of them don’t half the balls to go on strike and hurt corporate, it’s how they bend their back easily, but if they keep pushing and pushing all you hear is workers complaining and nothing getting done.

But that’s why Seaworld gets away with firing workers and replacing them with new ones. Seniority does cost the company money and they would rather start with new workers at half a lower pay than they are used to because they don’t know any better.

I started at 18.64 back in 2013 and by 2018 I heard new workers were getting offered 11 bucks an hour I was like hold up, “and you didn’t barter with HR before accepting the contract? “

 

[Goofyernmost]

I know texas is an At Will State, i have to do my research with Florida Unions but wouldn’t be surprised if they do, I mean that’s the problem with union workers anyways, half of them don’t half the balls to go on strike and hurt corporate, it’s how they bend their back easily, but if they keep pushing and pushing all you hear is workers complaining and nothing getting done.

But that’s why Seaworld gets away with firing workers and replacing them with new ones. Seniority does cost the company money and they would rather start with new workers at half a lower pay than they are used to because they don’t know any better.

I started at 18.64 back in 2013 and by 2018 I heard new workers were getting offered 11 bucks an hour I was like hold up, “and you didn’t barter with HR before accepting the contract? “

Supply and demand my friend! If there are people knocking your door's down there is no need to negotiate. Until the tables turn and help is unable to be found the rates will remain low. Skilled professions still do well financially because the numbers of available people to fill those positions are much lower. Some of it is on the individuals that, even in this age, think that what YOU think you know is as valuable as what THEY think you know based on education or training. They still control the money and determine what each person is worth based on THEIR judgement and not yours. And also on what magnitude of excellence is required for the jobs offered.

 

[Brian]

Workers in Disney may want to rethink before going on strike if they still want to be employed. Is there a no strike clause in WDW?

Yes. No strikes allowed, at least for STCU cast members.

 

[DCBaker]

"The Disneyland resort plans to lay off more than 200 actors as the “Frozen” and “Mickey and the Magical Map” live shows lower their curtains for good after yearslong runs while Disney’s Anaheim theme parks remain shuttered amid the pandemic.

End of run notices have been sent to actors in the “Frozen: Live at the Hyperion” at Disney California Adventure and “Mickey and the Magical Map” at Disneyland, according to the American Guild of Variety Artists West.

“We have been told that Disney will be laying off 214 of our members which represents approximately 70% of our members currently employed at the Disneyland resort,” AGVA West Disneyland representative Steve Rosen said via email."

-

"AGVA West remains in bargaining talks with Disney.

“At this time, no AGVA members have received layoff notices,” Rosen said via email.

Live entertainment like the “Frozen” and “Magical Map” stage shows that draw large crowds were expected to be temporarily canceled when Disney’s Anaheim theme parks eventually reopen.

It’s still possible “Frozen: Live at the Hyperion” and “Mickey and the Magical Map” could return, according to Rosen.

“An end of run notice means ‘technically’ that the shows are permanently closed, but Disney has sent end of run notices in the past and then subsequently reopened the show.”

Disneyland to lay off 200 actors as ‘Frozen Live’ and ‘Mickey and the Magical Map’ close amid pandemic

End of run notices have been sent to actors in the ‘Frozen: Live at the Hyperion’ at Disney California Adventure and ‘Mickey and the Magical Map’ at Disneyland, according to…

www.ocregister.com

 

[MagicHappens1971]

There are indications that ESPN is still one of the most profitable parts of the entire Disney company (and may be the most profitable) even with the decline in cable subscribers. It's no longer an absolute money printing machine the way it was 15 years ago, but it still makes a ton of money.

I have a family member that was a marketing exec for Disney for over 10 years. ESPN hasn’t been a money printing machine in a VERY long time. It is one of the LEAST profitable parts of the company.