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

[Drdcm]

I was thinking the same thing anyways following the post Covid surge and so many revisiting Disney since the pandemic not liking how things are now (genie, park reservations, park hopping, magical express, dining plan, pricing, etc etc etc) so return timelines are likely not going to be as frequent maybe as they were before

Now factoring in all the layoffs, and increase costs of so many other things, Disney parks may take a hit and decrease in guests down the road. I guess they are hoping Moana’s water feature thing will bring in the crowds

We had a trip planned this spring that we canceled a few days ago because we’re worried about my wife getting laid off. I have about 10 friends who were laid off in the last two months (mostly lawyers and PhDs). We couldn’t justify the $7000+ price tag. It was a lot easier to say no this time as well because not sure the experience justifies the cost anymore.

 

[GhostHost1000]

We had a trip planned this spring that we canceled a few days ago because we’re worried about my wife getting laid off. I have about 10 friends who were laid off in the last two months (mostly lawyers and PhDs). We couldn’t justify the $7000+ price tag. It was a lot easier to say no this time as well because not sure the experience justifies the cost anymore.

Hate to hear that and hope everything works out ok with your wife’s job.

 

[Andrew25]

If there's one positive thing that came from this call, is that the parks are showing up as a strong business (always has been) and additional investment seems likely over the next few years.

 

[bcoachable]

Wall Street reacted well to the re-org news. Disney stock is up 8% in after hours trading.

@Sirwalterraleigh - you said you would let me know when to buy in!! Apparently I missed my email!!

 

[Sirwalterraleigh]

@Sirwalterraleigh - you said you would let me know when to buy in!! Apparently I missed my email!!

Not yet…

…it’s up $2….meh

 

[Lilofan]

Price gouge the customers to pay stockholders

I heard most stockholders are institutional investors ( ie 401K ).

 

[Drdcm]

I heard most stockholders are institutional investors ( ie 401K ).

That makes sense. I don’t bother with individual stocks. Just give me a total market index fund. Most retirement funds consist of those as well.

 

[Nubs70]

Regardless of which positions need to be in person and which don't, the OP's implication was that a bunch of employees were going to now go into the office to show off how useful they are. If management needs to see people in the break room to remember what somebody does, then management needs to be swiped.

Showing up now in the office will not save you. The list have been made.

 

[GhostHost1000]

Showing up now in the office will not save you. The list have been made.

That’s what I assumed as well. I know in my company the managers know what’s coming and are prepared with names prior to the news being shared

 

[Casper Gutman]

I heard most stockholders are institutional investors ( ie 401K ).

A quick bit of research seems to suggest less then 20% of the stock market is in 401ks and that, as one might expect, the very wealthy own a hugely disproportionate amount of stock. Maybe I’m incorrect, but it sort of seems that companies catering to the stock gurus aren’t just doing so for the benefit of California school teachers.

 

[Lilofan]

That makes sense. I don’t bother with individual stocks. Just give me a total market index fund. Most retirement funds consist of those as well.

Love index funds. Long term , it is my money working harder than I do.

 

[Vegas Disney Fan]

Large company layoffs just started about 3 months ago, the laid off are starting to run out of severance, PTO payouts, and starting on pogie.

Unemployment pays out at around $12 -15k. Travel is going to slow big time.

As someone who relies on tourists for my job I’m more worried about another housing market correction, that’s when travel will really take a nosedive. Right now feels like 2007 again, lots of people taking out equity and using that for vacations and big purchases.

Lots of people are house rich again and living beyond their means, great for tourism now but likely disastrous in a few years, we (humans) have such short memories.

My guess is the house market and other future economic predictions factored heavily into this decision as well.

 

[Coaster Lover]

Ok hear me out…

Disney just needs to sell Splash water to make $5.5b

You say that jokingly, but the collectors market for stuff like this is crazy. Hersheypark is modifying one of their wooden coasters. Recently, they took a bunch of the old lumber they removed from the ride, cut it into 8" segments, slapped a metal plaque on the segment, and sold the segments for $300 a piece... they made 160 of them and they sold out in like 2 days. If Disney made some sort of "official" collectors piece from the Splash Mountain demo, I have no doubt they could make a "limited" production of 5,000 and sell them for $200 a piece and they'd have no issue selling them all.... it's not $5.5B, but it's a relatively easy $1 million...

 

[Drdcm]

Ae someone who relies on tourists for my job I’m more worried about another housing market correction, that’s when travel will really take a nosedive. Right now feels like 2007 again, lots of people taking out equity and using that for vacations and big purchases.

Lots of people are house rich again and living beyond their means, great for tourism now but likely disastrous in a few years, we (humans) have such short memories.

My guess is the house market and other future economic predictions factored heavily into this decision as well.

They got rid of a lot of the tourist friendly offerings to entice people as well. I am one of those people who think Magical Express was important for my vacation experience. Evening EMH as well…

They really should try to move more towards a “get them here and keep them here” policy again.

 

[Lilofan]

A quick bit of research seems to suggest less then 20% of the stock market is in 401ks and that, as one might expect, the very wealthy own a hugely disproportionate amount of stock. Maybe I’m incorrect, but it sort of seems that companies catering to the stock gurus aren’t just doing so for the benefit of California school teachers.

I talked with my Wall Street friend. Over 90% of index funds trading daily wich a few index funds include Disney are institutional investors

 

[maemae74]

Suggesting that the "mainstream" news won't report on things is feeding into the very political idea that there's a conspiracy where the powers that be are controlling what information you receive and that you need to seek out "alternative" news sources or "do your own research" to find the actual facts.

Sorry but it has been proven that the mainstream media does in fact suppress news here and there. If we are being honest the only news source that actually reports facts with little to know emotional attachment is Al Jazeera. NPR has even gone the route of CNN and FOX.

 

[wdwmagic]

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses​

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses

www.wdwmagic.com

 

[DisneyDebRob]

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses​

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses

www.wdwmagic.com

I always love the “ how great, magnificent, we could have not done things without her/him” wording goes when they let someone go. I don’t know anything about her. Was she involved in anything major that we would know about?

 

[SteamboatJoe]

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses​

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses

Rebecca Campbell is the first high profile Disney executive to leave following Iger's announcement of major cost cutting and job losses

www.wdwmagic.com

I know so little about big (big) business. President of DLR and head of international content don't exactly seem to be similar. Its like putting the head of selling t-shirts and toys in charge of resort ops and creative.

 

[Jrb1979]