News Bob Iger outlines the need to transform the Walt Disney Company resulting in 7000 job losses and $5.5 billion in cost savings

[Vegas Disney Fan]

They made that god knows how many times over with G+ and ILL and ticket cost increases and 3 years of parking fees, and not having to pay Mears, more after hour parties, more expensive light sabers.

etc.
etc.
etc.

Yep, that’s how you offset new costs, you raise prices, offer fewer perks, and start charging for things that used to be free.

 

[lazyboy97o]

All those things are true, my point is simply that being a big profitable company doesn’t make them invincible from failing.

People act like we’re talking about $1-2 an hour for a couple employees but the reality is most CMs were making $10-12 an hour in 2019 (https://www.businessinsider.com/how-much-everyone-gets-paid-at-disney-parks-2019-8) and we’re now talking about $18-20. Multiply that $8 an hour raise times 75,000 WDW employees times 1500-2000 work hours a year and it’s about $1 billion a year in higher labor costs, that’s a lot of money even for Disney. Especially on top of losing billions on D+. Wages won’t be the reason for a company like Disney failing but they can certainly be a contributing factor.

@lentesta has done the math in the past. Incredibly small decreases in margins or price increases measured in cents could provide substantial raises

 

[JoeCamel]

~50K in the MK daily? @ ~$100 a head is $5M just to open the gate there........

 

[mkt]

Unemployment pays out at around $12 -15k.

$3300 max per year in Florida

 

[note2001]

$3300 max per year in Florida

Third lowest in the country. One of the reasons people need to seriously question if they can afford to move to Florida. When layoffs come, the state does not have your back to help you get back on your feet.

 

[Lilofan]

Yep, that’s how you offset new costs, you raise prices, offer fewer perks, and start charging for things that used to be free.

One way to lower labor costs is seeing what I saw when I went to my neighborhood Target store. Good luck trying to find a cashier. There isn’t one, just the return desk staffed by one employee and 6 self service kiosks where I pay and bag my own items. I don’t see it now but never say never if Disney goes in this direction.

 

[JMcMahonEsq]

One way to lower labor costs is seeing what I saw when I went to my neighborhood Target store. Good luck trying to find a cashier. There isn’t one, just the return desk staffed by one employee and 6 self service kiosks where I pay and bag my own items. I don’t see it now but never say never if Disney goes in this direction.

I could be mis-remembering but I thought when I was there in December 2021, that at both disney springs and MK they were testing options for self check out. It wasn’t a kiosk but i believe you could scan QR code and pay with your phone. Maybe utilizing a feature of my Disney ex app? You already order and pay for quick service via app so not a large stretch to expand to other purchases

 

[mysto]

Do you think maybe the 700m capex reduction is a reaction to the RCID dismantling? Timing says maybe. Dismantling was a reaction to Chapek's comments, which was a reaction to a new florida law a few years ago.

If they choose not to hire particular construction companies owned by particular people it could really upset some wealthy local supporters.

I don't know who owns the contractors Disney hires, usually I expect it would be board members themselves. But perhaps some aren't and will have their part of the budget cut completely.

Notice how one exec gives the reaction to RCID and a different one announces the cuts, separating the two. Iger diplomacy.

 

[Vegas Disney Fan]

Universal just announced they’re raising their base pay to $17 an hour (the day before Disney goes back to negotiations), Disney will have to at least match that.

 

[celluloid]

Universal just announced they’re raising their base pay to $17 an hour, the day before Disney goes back to negotiations, Disney will have to at least match that.

I love that kind of power move.

I so don't know if Disney has matched Universals maternity and Paternity leave changes yet either.

 

[Minnesota disney fan]

Wages were not the reason those stores went away. Bad investments, unable to keep up with times, poorly designed stores and outright fraud management had a lot more to do with their demise.

I must add that Sears merchandise went from dependable and first class that you could depend on, to cheap and inferior. I especially noticed this in their appliances. We always bought Sears as the brand was so solid. Then they cheapafied everything. Their brand name went downhill after all that. Sound familiar?

 

[Andrew C]

Universal just announced they’re raising their base pay to $17 an hour (the day before Disney goes back to negotiations), Disney will have to at least match that.

Confused...isn't WDW already there?

 

[MagicHappens1971]

Confused...isn't WDW already there?

No. Disneys base pay is $15/hour

 

[Vegas Disney Fan]

Confused...isn't WDW already there?

They are offering $16 with yearly raises til $20, the union wants $18 with future raises.

 

[Andrew C]

They are offering $16 with yearly raises til $20, the union wants $18 with future raises.

Ok. So they are in the same ballpark then...I guess we will see if there is some sort of compromise between what they are offering and what the union wants.

 

[celluloid]

They are offering $16 with yearly raises til $20, the union wants $18 with future raises.

Good thing that got turned down. A yearly raise of one dollar is good for the first year and ok for the second. But by yesrs after that to get to 20 it will be far below the inflation.

 

[Vegas Disney Fan]

Good thing that got turned down. A yearly raise of one dollar is good for the first year and ok for the second. But by yesrs after that to get to 20 it will be far below the inflation.

It’s still a ton compared to the $10-12 most CMs were making just a couple years ago.

I suspect they’ll compromise on $17, Universal is smart to do this since they’ll come off as the more generous company forcing Disneys hand.

 

[Andrew C]

But by yesrs after that to get to 20 it will be far below the inflation.

Everything is far below inflation right now...even if someone got what is normally considered to be a decent raise last year, it was basically a pay cut because of that...

 

[Andrew C]

I suspect they’ll compromise on $17, Universal is smart to do this since they’ll come off as the more generous company forcing Disneys hand.

Yeah, was thinking something similar. Got to $17 base right away rather than $16 and keep everything else offered more or less the same.

 

[celluloid]

Everything is far below inflation right now...even if someone got what is normally considered to be a decent raise last year, it was basically a pay cut because of that...

Yeah, so the 20 deal in more than a few years from now would be even worse.

More than the "dollar in hand" Uni has increased a lot. of time off leave benefits and long term packages.
I can't find info on Disney current paid paternity leave.