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

Tony the Tigger

Well-Known Member
I would if I were them. What is Disney going to do? Fire them all? Maybe it is just me, but I always thought it was easy to walk away from a job I could get the same pay elsewhere.

It may depend on how much they realize Disney needs them though. Disney could cut half the middle management from that company and be fine. Cut any of your frontline on the other hand you will lose even more due to the redistributed work, quality will decrease further, offerings will be cut, etc. Want to see your customers even more ticked off after all the price hikes and BS of the last few years? Cutting frontline would be a quick way to do it.

In reality enough people will be scared for what little financial security they have that they may cave and accept the existing deal but we'll see.
Or just hire new people who will be happy to work at WDW for $18 an hour.

Don’t even try to tell me an entry level cashier is underpaid at $18 an hour.
 

Dranth

Well-Known Member
Or just hire new people who will be happy to work at WDW for $18 an hour.

Don’t even try to tell me an entry level cashier is underpaid at $18 an hour.
That is perfectly within the companies right to do and if they think they can pull it off and maintain the service level they need to not damage their brand then more power to them. It is a right to work state so have at it.

However, from where I sit, Disney already can't find enough people so where are all these folks lining up for the $18 an hour going to come from? If I can get roughly the same pay at 10 other places in the area what is the down side?
 

Disney Analyst

Well-Known Member
Here's the full memo from Josh D'Amaro -

Team,

On yesterday’s earnings call, Bob announced a strategic reorganization that refocuses the company on creativity, empowers our creative leaders and ensures we have accountability for our businesses globally. As you heard yesterday, effective immediately, the company will be reorganized into three core business segments: Disney Entertainment, co-chaired by Alan Bergman and Dana Walden, ESPN, led by Jimmy Pitaro, and Disney Parks, Experiences and Products, which I will continue to lead.

Our colleagues in Disney Media and Entertainment Distribution (DMED) and International Content and Operations (IC&O) will be immediately joining either Disney Entertainment, ESPN, a shared services team that supports both of those new business segments, or a corporate organization.

I’m inspired by Bob’s clear vision and I’m excited for us to contribute to a new era of exceptional storytelling. It’s an incredible privilege to lead Disney Parks, Experiences and Products and work with all of you as we collaborate with teams across the company to embark on this next chapter in Disney’s history.

Over the last few years, we’ve faced a great deal of disruption and change, and I am extraordinarily proud of the resilience you all have displayed — you embraced the need for transformation by implementing new processes, developing creative solutions, and identifying opportunities to improve our business across the organization. I know it hasn’t always been easy, but we have continued to deliver outstanding results and I’m thankful for your hard work.

As we look to the future, I want you to know that the Guest and consumer experience remains at the core of all we do, and we will continue to listen to feedback and make decisions that enhance the quality of their experience

Our businesses provide an immersive, live canvas for Disney’s unrivaled catalog of content, enhancing the value of our brands and franchises with real world experiences that connect Guests and fans to the stories and characters they love. We remain committed to our legacy of delivering these innovative and meaningful storytelling experiences and will continue to invest in our business with immersive, relevant content around the world. Yesterday’s announcement of an Avatar experience coming to the Disneyland Resort is just one example of this.

Finally, as was shared on the earnings call, the company is targeting significant savings across all businesses and the reorganization will result in necessary reductions to our overall workforce. While our teams have made great progress in contributing to cost savings, these measures affect every segment and organization — including ours — and are vital as we implement more cost-effective, coordinated, and streamlined operations. As we determine our approach on achieving these savings, we will remain focused on delivering the best guest and consumer experiences, and do not expect this to affect our hourly frontline Operations roles.

I know how difficult this is to hear and understand the anxiety that comes with this kind of uncertainty. We will do everything we can to be transparent as things progress, and most importantly, we will act with respect and care every step of the way.

I truly believe in this company, am confident in its future, and look forward to building upon our remarkable success.

Thanks for all you do.

Josh



I much prefer these letters going out then the current trend of big tech just locking you out of everything one morning.

At least it gives people a chance to expect it may be coming.
 

Lilofan

Well-Known Member
I much prefer these letters going out then the current trend of big tech just locking you out of everything one morning.

At least it gives people a chance to expect it may be coming.
One thing about impending layoffs from my experience once official word goes out , the layoffs immediately follow.
 

ctrlaltdel

Well-Known Member
Or just hire new people who will be happy to work at WDW for $18 an hour.

Don’t even try to tell me an entry level cashier is underpaid at $18 an hour.
The labor market is historically tight. A lot of low-wage workers leveled up into office jobs. The resulting need for frontline workers in many industries/lack of workers willing to work those jobs has seen a huge rise in pay. Obviously being in a union negotiation complicates things, and I actually think without it Disney would already be paying at that level. It's pretty much near the going rate in my neck of the woods and I'm in a low-COL area (albeit in a high minimum wage state).

Honestly it's a good thing. These are jobs that have to get done and I am sure there is direct correlation from filling the frontline workforce and guest satisfaction . They should be paid better than they had been pre-pandemic.
 

lazyboy97o

Well-Known Member
That is perfectly within the companies right to do and if they think they can pull it off and maintain the service level they need to not damage their brand then more power to them. It is a right to work state so have at it.
“Right to work” means employees cannot be required to join the union. It doesn’t mean the company can just toss aside union agreements and make everyone a purely at will employee.
 

Dranth

Well-Known Member
“Right to work” means employees cannot be required to join the union. It doesn’t mean the company can just toss aside union agreements and make everyone a purely at will employee.
Yes, which works further in the employees favor.

I am sure Disney has a clause in the agreement where they can fire anyone with cause but if the whole/enough of the union want to push the issue and walk out, Disney can't just replace them the way many like to suggest, even if they can legally do so. The downtime alone not to mention the cost to train a whole new staff, assuming they could even find enough people, would be way more than just caving to the couple of extra dollars.

However, not that they want to do Disney any favors but Florida is going out of its way of late to prove just how little they care about contracts so who knows what is possible now.
 

TheGuyThatMakesSwords

Well-Known Member
Go ahead - transform 😆 . OUR DVC sold off, no more trips, until we know what our family will get :). Functional parks, trash free, with staff? That would be nice.

No Money for YOU 😆.
 

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TP2000

Well-Known Member
"We do not expect this to affect our hourly frontline Operations roles."

Costumed cast members are not going to be impacted.

They never are.

With the exception of the long 13 month Covid closure of Disneyland mandated by Governor Newsom, hourly CM's never have been impacted when there are salaried layoffs in the past, and they won't this time either.

If the hourly CM's on both coasts are lucky enough, a few of their least favorite managers will soon be gone. 🧐
 

TP2000

Well-Known Member
One thing about impending layoffs from my experience once official word goes out , the layoffs immediately follow.

Agreed. This is a plan and quick calendar of events that the senior executives have been planning out and strategizing since Bob Chapek announced the layoffs in November. When of course, a few members here refused to acknowledge that there were layoffs coming. :rolleyes:

But it's been almost three months since Chapek announced layoffs were now on the table, and here they are. With Iger instead of Chapek.

This will all go rather quickly in the next few weeks. Generally it starts at the executive level at first, to try and soften the blow once they get to the masses of cubicle folks being walked out a few weeks later.
 

Lilofan

Well-Known Member
Agreed. This is a plan and quick calendar of events that the senior executives have been planning out and strategizing since Bob Chapek announced the layoffs in November. When of course, a few members here refused to acknowledge that there were layoffs coming. :rolleyes:

But it's been almost three months since Chapek announced layoffs were now on the table, and here they are. With Iger instead of Chapek.

This will all go rather quickly in the next few weeks. Generally it starts at the executive level at first, to try and soften the blow once they get to the masses of cubicle folks being walked out a few weeks later.
When Iger recently visited WDW it was smiles and photos ops. No one probably had a clue that layoffs would follow.
 

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