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

[Sirwalterraleigh]

Josh D'Amaro: "...exacerbated in California by the State’s unwillingness to lift restrictions that would allow Disneyland to reopen..."

No ulterior motive there, huh?

If true...that would be the FIRST time a Disney exec opened his mouth without one.

That is not a slight...merely a statement of truth.

 

[lazyboy97o]

Just going off of the official press release making note of the CA lockdown being a factor.

It did, though. The number wouldn't be 28,000. It might be 25,000. Or 22,000. Or 27,500. No one knows, because DLR is still not operating. But to say it had no impact is wrong - the number would be less then 28k.

Then it stands to reason that Disney would have highlighted the specific impact as part of their public pressure. They didn’t, which clearly suggests it’s not really a factor.

 

[natatomic]

I got the call today, unfortunately. I was only seasonal, so no super huge loss for me money-wise, but I did have 11 total years with the company. Sad to see it end this way. Many part-timers in my department were also let go.
Without being too specific, we were in a non-unionized transportation role, though you can probably figure it out with that, lol.

 

[SirWillow]

Reports I'm getting and reading through now- if there is Photopass left in California, it's not much. I've had a few indicate that they think the whole department has been eliminated. I'm unable to confirm that, but it's ugly out there.

 

[Kamikaze]

Then it stands to reason that Disney would have highlighted the specific impact as part of their public pressure. They didn’t, which clearly suggests it’s not really a factor.

Because they don't know the number. Its not possible to know it. They don't know how much capacity they would/could have or what guest attendance would be, therefore they don't know how many CMs they could possibly need. Regardless, its not the scenario we are in.

 

[GladToBeHear]

Then it stands to reason that Disney would have highlighted the specific impact as part of their public pressure. They didn’t, which clearly suggests it’s not really a factor.

So you don't think the extended CA lockdown/closure of DL played a role? In at least the number of layoffs.

 

[UNCgolf]

So you don't think the extended CA lockdown/closure of DL played a role? In at least the number of layoffs.

I don't. It may have played negligible role if the park was open and there were certain people they had to keep around for staffing, but I wouldn't even be sure that's the case because they obviously kept some staff for whenever DL does open. It's not like they fired everyone who works at DL.

Disneyland being open at a low capacity would not have made a significant difference in their bottom line. The vast majority of these people were going to be laid off no matter what; it's not an operations issue but a money issue.

 

[Sirwalterraleigh]

Reports I'm getting and reading through now- if there is Photopass left in California, it's not much. I've had a few indicate that they think the whole department has been eliminated. I'm unable to confirm that, but it's ugly out there.

Photopass has basically been rendered obsolete by cells...

It’s hard selling stuff people can get otherwise with minimal effort.

I don’t think in park cameramen should be thinking about real estate right now...maybe a car though

 

[UNCgolf]

Photopass has basically been rendered obsolete by cells...

I don't think that's true -- mainly because if you're relying on a personal cell phone, you're always going to be missing someone from the photo unless you ask random strangers to take them for you constantly.

Most families want to get a photo of everyone together instead of dad/mom being left out. Same thing if couples are there together.

 

[TrainsOfDisney]

Photopass has basically been rendered obsolete by cells...

It’s hard selling stuff people can get otherwise with minimal effort.

The photographers seem to always have non-stop business in the parks.

 

[oceanbreeze77]

Reports I'm getting and reading through now- if there is Photopass left in California, it's not much. I've had a few indicate that they think the whole department has been eliminated. I'm unable to confirm that, but it's ugly out there.

that's what I am seeing too. CA really took a hit, I saw one tweet that said someone from the Opening Photopass team of DCA got cut.

 

[oceanbreeze77]

I got the call today, unfortunately. I was only seasonal, so no super huge loss for me money-wise, but I did have 11 total years with the company. Sad to see it end this way. Many part-timers in my department were also let go.
Without being too specific, we were in a non-unionized transportation role, though you can probably figure it out with that, lol.

Sorry to hear that.

 

[lazyboy97o]

Because they don't know the number. Its not possible to know it. They don't know how much capacity they would/could have or what guest attendance would be, therefore they don't know how many CMs they could possibly need. Regardless, its not the scenario we are in.

Yes, they do. Forecast modeling is nothing new to theme parks.

So you don't think the extended CA lockdown/closure of DL played a role? In at least the number of layoffs.

I do not believe it has a meaningful impact. If it did then it’s something that it makes sense to highlight and layoffs would be focused around Disneyland. Walt Disney World is open and largely free to do as they please but layoffs are still occurring, resorts and venues are still closed.

 

[oceanbreeze77]

I do not believe it has a meaningful impact. If it did then it’s something that it makes sense to highlight and layoffs would be focused around Disneyland. Walt Disney World is open and largely free to do as they please but layoffs are still occurring, resorts and venues are still closed.

Also the number of calls they have made, and the departments they have made these cuts to, kind of makes me think these were unsalvageable. MAYBE a small number of them, but the cuts are in areas that disney has already drastically made changes to (budget cuts) in the past..

 

[el_super]

It did, though. The number wouldn't be 28,000. It might be 25,000. Or 22,000. Or 27,500. No one knows, because DLR is still not operating. But to say it had no impact is wrong - the number would be less then 28k.

They're keeping roughly 70% of their Cast Members. Do you really think it would take 71% of their Cast Members to open the park?

And as I said before, do you think they will rehire any of those people back, if they get the OK to reopen tomorrow?

Josh D'Amaro: "...exacerbated in California by the State’s unwillingness to lift restrictions that would allow Disneyland to reopen..."

It is completely within Disney's interest to pin this on the government. It will make it far easier to attract those people back, if they feel Disney wasn't the instigator (they were). But as @lazyboy97o pointed out, if they had specifics about how the reopening was exacerbated, they would have provided them. As worded above, we can take this to mean that still being closed makes it more sad and depressing, but doesn't really change the numbers.

So you don't think the extended CA lockdown/closure of DL played a role? In at least the number of layoffs.

In the spirit of compromise, maybe on some grand, overarching, nebulous way, maybe? Maybe if the parks were open a few months earlier, and the indications were that it was safe to travel, bookings might be slightly above what they are now. But I would still think it would be an marginal difference at best. Maybe 1 to 2%. The bigger factor would be the health and safety of the travel industry in the US as a whole, and not just what is happening in California.

Typically the way long term forecasting goes, they will operate within a possible range and make decisions that are essentially the safest bet. So if their long term forecast is indicating that attendance could be down 40-50%, eliminating 30% of your workforce makes sense, because you will still have a buffer if the long term forecast turns out to be closer to the 40% than the 50%. It also gives you the option of cutting more cast in the future if the forecast trends more toward the 50%, rather than trying to scramble to rehire people later.

The 30% is the safe bet.

 

[LSLS]

And as I said before, do you think they will rehire any of those people back, if they get the OK to reopen tomorrow?

To me this is the best argument. They are now saying CA is getting ready to put out their theme park plan, correct? So @GladToBeHear , if they open up next week with the plan in place, how many rehires do you expect to hear about in the press release?

 

[UNCgolf]

The other thing is, as I posted either here earlier or elsewhere (I don't remember) -- these layoffs are something that Disney management almost certainly wanted to do. The current situation has given them an incredibly good excuse, but it's not as if Iger wasn't very clear in the past that he thought Disney needed to cut down on the number of employees.

I would be surprised if most of these jobs ever come back (at least under current management) regardless of how busy the parks get; they want to spend less on labor costs.

 

[Sirwalterraleigh]

I don't think that's true -- mainly because if you're relying on a personal cell phone, you're always going to be missing someone from the photo unless you ask random strangers to take them for you constantly.

Most families want to get a photo of everyone together instead of dad/mom being left out. Same thing if couples are there together.

I understand what you’re saying...but they aren’t gonna hock a lot of $99 digital packages or $15 individuals anymore. Everyone has a Camera with 5x the resolution of a $2000 Nikon from 1999 in their pocket

 

[Sirwalterraleigh]

To me this is the best argument. They are now saying CA is getting ready to put out their theme park plan, correct? So @GladToBeHear , if they open up next week with the plan in place, how many rehires do you expect to hear about in the press release?

Over/under Zero?

 

[Sirwalterraleigh]

The other thing is, as I posted either here earlier or elsewhere (I don't remember) -- these layoffs are something that Disney management almost certainly wanted to do. The current situation has given them an incredibly good excuse, but it's not as if Iger wasn't very clear in the past that he thought Disney needed to cut down on the number of employees.

I would be surprised if most of these jobs ever come back (at least under current management) regardless of how busy the parks get; they want to spend less on labor costs.

...you didn’t need the “almost”