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

[AEfx]

Seems like you haven't walked in leadership shoes?

That's such an...odd response to what I said. And incorrect, as I spent over a decade playing the corporate game, so I know of what I speak. In fact, I can't imagine anyone who works at a corporation for any length of time on either side of the ladder who doesn't know these things to be true, even if they won't admit it because they have one of these jobs we are talking about.

There is also a stark difference In the past decade and a half versus the last economic downturn. For one, companies like Disney can't cut the lower level employees any more - they have reduced staffing so much in this time, that they are already running on skeleton crews and the bare minimum to keep things operating from the people who actually produce the work and keep companies in motion.

Then you have the fact that the pandemic and work from home shone a huge bright spotlight on who does what at companies. It became very clear who is actually responsible for what, and who is actually necessary to keep things running and who is not. And what it exposed is what most people already knew - a lot of extreme bloat in middle/middle-upper management/consulting positions that ultimately are overpaid for the tangible benefits they actually bring the company.

These two things together are why all these corporations are making cuts where they are - they can't cut any more below the line without clients/customers revolting, and they realized they don't need a dozen levels of people reporting on people reporting on people reporting, particularly "teams" of people who share what should really only be one actual job, and so on.

This is just one small facet of the massive shift happening right now in the American work force. We are in the middle of a reckoning, and very few are actually safe. Workers on the lower end are demanding to be paid fairly for their work, and corporations on the higher end are finally starting to question why there are so much redundancy in their ranks. Of course, the highest levels are not going to give anything up, CEOs and BOD's are going to...CEO and BOD...but everyone else in corporate land is starting to be judged on the actual value they bring, versus the perceived value of the positions that have protected them up until now.

 

[Lilofan]

That's such an...odd response to what I said. And incorrect, as I spent over a decade playing the corporate game, so I know of what I speak. In fact, I can't imagine anyone who works at a corporation for any length of time on either side of the ladder who doesn't know these things to be true, even if they won't admit it because they have one of these jobs we are talking about.

There is also a stark difference In the past decade and a half versus the last economic downturn. For one, companies like Disney can't cut the lower level employees any more - they have reduced staffing so much in this time, that they are already running on skeleton crews and the bare minimum to keep things operating from the people who actually produce the work and keep companies in motion.

Then you have the fact that the pandemic and work from home shone a huge bright spotlight on who does what at companies. It became very clear who is actually responsible for what, and who is actually necessary to keep things running and who is not. And what it exposed is what most people already knew - a lot of extreme bloat in middle/middle-upper management/consulting positions that ultimately are overpaid for the tangible benefits they actually bring the company.

These two things together are why all these corporations are making cuts where they are - they can't cut any more below the line without clients/customers revolting, and they realized they don't need a dozen levels of people reporting on people reporting on people reporting, particularly "teams" of people who share what should really only be one actual job, and so on.

This is just one small facet of the massive shift happening right now in the American work force. We are in the middle of a reckoning, and very few are actually safe. Workers on the lower end are demanding to be paid fairly for their work, and corporations on the higher end are finally starting to question why there are so much redundancy in their ranks. Of course, the highest levels are not going to give anything up, CEOs and BOD's are going to...CEO and BOD...but everyone else in corporate land is starting to be judged on the actual value they bring, versus the perceived value of the positions that have protected them up until no

Corporate game of what you described is what I did. High stress, hours , demanding deadlines , eating quickly at your desk because the markets don't close until 4pm , sacrificing time away from family , at times week long meetings on West Coast then redeye back to NorthEast then straight to office for presentations. Your description of socializing , online etc etc seem like when the rat is away the mice will play. But bonus time was my favorite time of the year!

 

[Disorbust]

Of course, the highest levels are not going to give anything up, CEOs and BOD's are going to...CEO and BOD...but everyone else in corporate land is starting to be judged on the actual value they bring, versus the perceived value of the positions that have protected them up until now.

Doubtful. They will still be protected because many are SVPs of entire teams that are redundant and they aren't going to cut their own throat. I don't think Disney is unique in being a show.

If you did a basic SWOT analysis of Disney the list of threats is to the point I really don't know if they can overcome them.

 

[Captain Neo]

I wonder if Jonathan Majors will now be part of those layoffs….

 

[Sirwalterraleigh]

I wonder if Jonathan Majors will now be part of those layoffs….

Well if he’s still the Six Million Dollar man…then definitely

 

[Tha Realest]

I wonder if Jonathan Majors will now be part of those layoffs….

The actor who played Thanos was once accused of something similar.

 

[Sirwalterraleigh]

The actor who played Thanos was once accused of something similar.

Yeah but That was Diane Lane…

…he shoulda been executed

 

[DCBaker]

Here's the full memo on upcoming layoffs from Bob Iger as shared by Deadline -

Dear Fellow Employees,

As I shared with you in February, we have made the difficult decision to reduce our overall workforce by approximately 7,000 jobs as part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more effective, coordinated and streamlined approach to our business. Over the past few months, senior leaders have been working closely with HR to assess their operational needs, and I want to give you an update on those efforts.

This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions. Leaders will be communicating the news directly to the first group of impacted employees over the next four days. A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target.

The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here. That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company.

For our employees who aren’t impacted, I want to acknowledge that there will no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward. I ask for your continued understanding and collaboration during this time.

In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future. Please know that our HR partners and leaders are committed to creating a supportive and smooth process every step of the way.

I want to thank each of you again for all your many achievements here at The Walt Disney Company.

Sincerely,

Bob

Disney CEO Bob Iger Confirms Start Of Layoffs, With Three Rounds Of Cuts Expected Before Summer

Disney CEO Bob Iger has confirmed the first of three rounds of layoffs will start this week as the company looks to trim about 7,000 jobs.

deadline.com

 

[Captain Neo]

I trust Bob Iger will be accepting a pay cut as well in order to better help create a more effective business?

 

[Drdcm]

I’m sure these cost-saving strategies will improve our park experience. Bob is really giving me the warm fuzzies, it’s all under control…

 

[flynnibus]

I’m sure these cost-saving strategies will improve our park experience. Bob is really giving me the warm fuzzies, it’s all under control…

It's a big boat.. and the parks aren't the part of the ship most in trouble.

 

[Drdcm]

It's a big boat.. and the parks aren't the part of the ship most in trouble.

Yeah. The whole thing is a mess.

 

[Willmark]

Disney is at a cross roads like no other. I don’t see the lessons of the past applying.

They expanded heavily into digital and have been churning out flops on the Animation side. Add to this any number of other issues and a good portion of parents “no longer trusting Disney?”

People can make of that what they will (I’m purposely not linking to any sites on person here). The salient point is Disney no longer has a grasp on its customers the way it once did nor are all parents on their side.

Note I’m not pointing this out for any other reason than Disney is going to have some tough choices ahead in regards to their future. Are they going out of business? No way. Too much IP for that to happen.

What is a possibility is they shrink in any number of ways going forward.

 

[Tha Realest]

Disney is at a cross roads like no other. I don’t see the lessons of the past applying.

They expanded heavily into digital and have been churning out flops on the Animation side. Add to this any number of other issues and a good portion of parents “no longer trusting Disney?”

People can make of that what they will (I’m purposely not linking to any sites on person here). The salient point is Disney no longer has a grasp on its customers the way it once did nor are all parents on their side.

Note I’m not pointing this out for any other reason than Disney is going to have some tough choices ahead in regards to their future. Are they going out of business? No way. Too much IP for that to happen.

What is a possibility is they shrink in any number of ways going forward.

Pixar is no longer a sure thing. They can't (or won't) release Star Wars theatrically*, opting instead to make it largely a D+ property. The MCU is not generating the returns it had become accustomed to.

* Supposedly they're to announce a new film/series next month, but there's been plenty they announced that they've since cancelled

 

[CaptainAmerica]

I’m sure these cost-saving strategies will improve our park experience. Bob is really giving me the warm fuzzies, it’s all under control…

What does cutting a corporate accountant based on Burbank or a recruiter based in Bristol have to do with your park experience?

 

[Drdcm]

What does cutting a corporate accountant based on Burbank or a recruiter based in Bristol have to do with your park experience?

Feel free to tear me apart, but the rationale behind these layoffs is for cost savings. What the parks need are increased capacity, which is going to require substantial investment. If the company is is cost cutting mode, i think those projects are unlikely to happen anytime soon.

 

[MisterPenguin]

Pixar is no longer a sure thing.

There has only been one post-Covid Pixar film, Lightyear. It did fail big in the box office. However, the critical and audience ratings aren't bad at all.

The previous films to Lightyear have received very good critical and audience ratings. But they were released to D+ at the same to whatever theaters were open worldwide. So, it's impossible to judge their box office performance.

and have been churning out flops on the Animation side.

Since when is two a 'churn'? Lightyear I mentioned above. And Strange World did indeed do poorly at the box office and with critical and audience ratings. But before that was the immensely popular Encanto.

 

[ToTBellHop]

If you are an upper-level manager this week and get a phone call, you definitely do not want to Answer the Call!

 

[Smiley/OCD]

The article states that all 3 divisions are expected to take part in the layoffs, however, Iger hasn’t made that same announcement. The parks side is one of the few areas of the company that has been consistently making money. TWDC has to maintain whatever positive feedback they are getting from the guest surveys. WE are saying they need more CM’s…the company has not made that same claim. If the park reservation system is ever going to go away, an increase in CM’s will have to occur. With the economy the way it is right now, IMHO, I would hope and ultimately expect the parks division to have the smallest amount of layoffs. I could be 100% wrong, but as I said, the company cannot afford to lose more loyalty and experience a negative growth in the one facet of the company that has been profitable.

 

[CaptainAmerica]

Feel free to tear me apart, but the rationale behind these layoffs is for cost savings. What the parks need are increased capacity, which is going to require substantial investment. If the company is is cost cutting mode, i think those projects are unlikely to happen anytime soon.

"The company" is not monolithic. When it rains in Orlando, they don't stock the shelves with extra umbrellas in Anaheim. One has nothing to do with the other. If anything, cost cutting in overhead areas and content production frees up cash flow to be used for investment in the parks.