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

[Sirwalterraleigh]

I said Pixar wasn't a "sure thing” any longer. The COVID-era numbers are closely held and only Disney knows whether they deliver value to the service. How many other streamers spent close to $200M per animated film for their services - Netflix, Amazon, Peacock, Paramount+ ? How have the markets reacted? All we do know is Lightyear bombed terribly, hence my statement that the studio is not the sure thing it once was.

They’ve had some good films that haven’t had the same kinda legs as early Pixar….

But the overall mystique of Pixar since roughly inside out has not been as good.

It’s like saying the MCU hasn’t declined. Of Course it has. Their parent company makes mistakes daily and fall all over themselves. It’s just the nature of the beast. No matter how many alleged “adults” won’t hear it.

 

[Lilofan]

You mean a big, fat $18 an hour?

So $29-44K depending on “company needs”?

…living the dream.

I am happy for the frontlines…it’s a nice reprieve. But they’re just “less behind” now…not ahead

Whatever managers are left will have much more of their plate after the layoffs minus that big raise they should not think they would get.

 

[Sirwalterraleigh]

Yes, some people do put their money where their mouth is. But most don't. Value can only be determined by the person.

My only issue is those who say they won't go and then do.

People have lost sight of “value” due to some big societal changes…

Which makes what we do here very difficult

 

[Tom P.]

What’s reasonable for full time employment in the United States in 2023?

I don’t know what the number is…but that’s the answer

People who crap on CMs missed a couple of points consistently:
1. It’s full time…we’re an overworked county and to extend that to a second job overruns it.
2. These are adults with every costs that adults have. If they’re miserable at home - if does Disney no good. Just like anywhere else.

You know that $18 an hour is insufficient but simultaneously have no idea what is sufficient? That makes no sense.

 

[Kamikaze]

People have lost sight of “value” due to some big societal changes…

Which makes what we do here very difficult

Meh. Value to one person isn't the same to another, so its almost always impossible to judge it for someone else.

I value my time enough that $15 for a ILL to save standing in line for an hour is worth it.
I value convenience enough that I'd rather park in the airport garage for $10 more a day than to park in an off-site lot.
Others might not see the same value for their time or convenience, and its not up to me - or you, or anyone else - to judge them for that.

 

[Kamikaze]

You know that $18 an hour is insufficient but simultaneously have no idea what is sufficient? That makes no sense.

A 'living wage' varies so much based on location, circumstance, etc. Its very difficult to just pick a number when you don't know all the info. That number in Orlando is far different than what it is in Podunk.

 

[MR.Dis]

They’ve had some good films that haven’t had the same kinda legs as early Pixar….

But the overall mystique of Pixar since roughly inside out has not been as good.

It’s like saying the MCU hasn’t declined. Of Course it has. Their parent company makes mistakes daily and fall all over themselves. It’s just the nature of the beast. No matter how many alleged “adults” won’t hear it.

The original post some pages back is Pixar has not been good since 2010:
Brave 2012 - Big hit
Inside Out 2015 - Big hit
Finding Dory 2016 - Big hit
Coco 2017 - Mega Hit
Incredibles 2 2018 - minor hit
Toy Story 4 2019 - Big hit
Than there was Onward 2020, Soul 2020, Turning Red 2022 which all either went straight to Disney Plus or had a very short theater release due to Covid.

 

[KeithVH]

They’ve had some good films that haven’t had the same kinda legs as early Pixar….

But the overall mystique of Pixar since roughly inside out has not been as good.

It’s like saying the MCU hasn’t declined. Of Course it has. Their parent company makes mistakes daily and fall all over themselves. It’s just the nature of the beast. No matter how many alleged “adults” won’t hear it.

Yeah, I wonder about Pixar any more. Since Onward (Mar '20), best estimates are they've lost between $250-300M across 5 films. Who gets to keep their job with performance like that? If they don't hit it out of the park with Inside Out 2 and Elemental, I see more heartache in Emereyville.

 

[Tom P.]

A 'living wage' varies so much based on location, circumstance, etc. Its very difficult to just pick a number when you don't know all the info. That number in Orlando is far different than what it is in Podunk.

I agree. But if we don't know what the number is for Orlando, how can we know that $18 is not the number? It would seem to me that in order to know what is too low, one would also have to know what is not too low.

 

[CaptainAmerica]

Communications have started.

People are posting on Linkedin.

 

[Andrew C]

Communications have started.

People are posting on Linkedin.

always crappy.

 

[Disney Analyst]

 

[flynnibus]

It's not like a football team because there's no limit that says you can only have 11 players on the field at once. You don't need to choose between soon-to-retire veteran and up-and-coming young star. You put them both on the field at the same time.

There is a limit - the actors you built up to be super stars continue to get more expensive. The number of films you can practically produce is also limited. So you eventually hit the problem of opportunity cost and your true margins.

Do I keep putting more and more of my resources into this one character... who I probably am getting less and less out of each time while costs continue to climb. Or, do I reset with a cheaper character, that stands to have a much higher upside in both longevity and margins.

Every team is facing these kinds of decisions of when is the right time or 'is one more the way to go' -- Studios do it too with characters and franchises. When do you keep milking the diminishing returns or do you chase the cheap breakout.

 

[CaptainAmerica]

It was never "metaverse" focused.

 

[Indy_UK]

Never good to loose your job but these interactive story telling ideas and the meta verse isn’t what people fall in love with when it comes to Disney.

Your better to skim/ resolve these divisions and invest more in WDI

 

[Parker in NYC]

Yes, some people do put their money where their mouth is. But most don't. Value can only be determined by the person.

My only issue is those who say they won't go and then do.

This is still a thing? How many things must a company do before one actually stops going? One of those awful “news sites” recommends their listeners spend less money on vacation to stick it to the Mouse. Maybe not going at all? There’s an idea.

 

[Sirwalterraleigh]

Yeah, I wonder about Pixar any more. Since Onward (Mar '20), best estimates are they've lost between $250-300M across 5 films. Who gets to keep their job with performance like that? If they don't hit it out of the park with Inside Out 2 and Elemental, I see more heartache in Emereyville.

I think their problems are indicative of some of the same issues in all their studios.

They don’t read things right, they don’t listen to the market correctly, then they blame the market when they’re wrong.

But I think Pixar is still in better shape for a rebound

 

[Vegas Disney Fan]

All I can tell you is that we looked at booking a trip this fall and decided against it. We're going elsewhere. A good part of that is because the cost is just so outrageous. I can take my family on two other vacations for what it would cost us to go to WDW. Now, I will also admit that part of our reasoning is for reasons I won't specify here but that the forum membership would pounce on and call me a bigot for and say I shouldn't care about. But, hey, I'm sure we're not the only ones acting based on such things either.

Regardless, though, the idea that everyone complains and no one will take their money elsewhere is, IMHO, false. There is a breaking point for everyone, whether it's because of cost, perceived quality, or some other reason. Disney may not have really felt it yet, but there IS a breaking point.

There’s likely thousands of people who “quit” Disney every year… but for every guest lost they seem to gain 2 more.

They are basically Hydra at this point.

 

[Parker in NYC]

There’s likely thousands of people who “quit” Disney every year… but for every guest lost they seem to gain 2 more.

They are basically Hydra at this point.

Agreed. I’ve been reading about this theoretical breaking point since I first starting reading Disney forums in the newer olden days. “THIS WILL BE THE YEAR!” And time marches on. “But look at the layoffs!” Time marches on. “But look at these fancy spreadsheets!” Time marches on. The deluge.

 

[Kamikaze]

This is still a thing? How many things must a company do before one actually stops going? One of those awful “news sites” recommends their listeners spend less money on vacation to stick it to the Mouse. Maybe not going at all? There’s an idea.

More than what they are.