Cuts coming to every area of parks and resorts - thanks to Shanghai and Paris

[ToTBellHop]

I mean I give Iger a chance in 2004 but that was 12 years ago.

Most around here liked him back then when he was replacing Eisner, whom most despised by then. I know because I was actually a member back then, unlike some...

 

[John]

Basically, there are multiple thresh holds. You have to have minimum years of service (10 and 15 are the levels, plus there are grandfathered in people who get lifetime medical, i think something like having started before 1998 or something, can't remember). But in addition to that, it sounds like there might be a rolling hours check. So you need to have worked something like 780 hours, in the six months prior to retirement. (that's 24 weeks at 32 hours, just a guess)

It sounds like raven's friend currently has hit that hours mark, but he may not be guaranteed to hit it in the next six months.

This is correct.......similar thing happened to my mother ( 20 year vet ) But she got the......retire or else option.

 

[raven]

Most around here liked him back then when he was replacing Eisner, whom most despised by then. I know because I was actually a member back then, unlike some...

I was number 870 to sign that petition to oust Eisner on the Save Disney website when it was still a plain white page with black type. Maybe someone needs to get that site going again.

 

[raven]

This is correct.......similar thing happened to my mother ( 20 year vet ) But she got the......retire or else option.

So sorry to hear this.

 

[DDLand]

Just a quick followup on a point @Lee posted and I extrapolated on, but word from very well-placed folks came in this evening (yes, I am living the life of a true Faux Top One Percenter in Europe right now) that backed up the chatter that more than Chappie laying down the law and certainly much more than anything happening with ESPN or DLP, these cuts are all related to two factors. Just two:

1.) Shanghai Disneyland (AKA Bob Iger's biggest Legacy project, followed by Lucasfilm and Marvel) is an over budget disaster that keeps getting worse and eating money more than the typical O-Town fanboi living off of Mommy and Daddy's money. And beyond opening, this park has a guaranteed Phase II coming that hasn't been budgeted or paid for yet and,
2.) MM+ is an unmitigated failure. Don't care one iota whether you like your MAGIC Bands or if they made your sixth WDW resort stay since May of 2013 so much more MAGICal. There were financial projections/guarantees made for this project and what it was expected to achieve and, despite all that placed PR content (you recall when that Austin dude just happened to wander in here because he really cared about your opinions and wasn't doing Burbank's biding, right? and y'all lapped it up almost as sickeningly as you did the Con Man of the Hills BS mea culpa!) it can't hide the fact that it will likely never even earn back the money that has been thrown into it, yet alone result in that 11% increase so prominently and proudly crowed about for years as WDW stagnated and rotted and y'all got excited over new toilets and uncharge parties.

And I'll leave you with this nugget to ponder: TWDC and WDW have never been more profitable. So, ask yourself if this is how they handle uncharted prosperity, just how will they handle some adversity ... especially with the global economy (this time led by China) poised for a major downturn?

Don't any of you cause any discomfort by actually voicing complaints to the execs? Nope. You might find yourself relegated to UNI's parks. (Oh, and while they are certainly better in O-Town right now, the fact remains that their leadership is basically as clueless as Disney's ... The Boy Who Lived makes up for a lot of shortcomings, just don't let the UNI Wave Wanders hear I told you so!)

I know this is a little dated, but I've had this question festering in my mind...

So according to multiple reports, MyMagic+ was acknowledged as an unmitigated failure by late 2013 (http://micechat.com/49401-my-magic-plus-failure/). That was when Iger learned about how it would never meet projections, it was broken, and that it was way over budget.

You and others have also been aggressively pounding away at the Shanghai Story and breaking news on that front. Sharing info about how Shanghai was way over budget, that it was money sink, and that it was probably going to have prolonged problems.

So why are we only now hearing that these two known problems are going to sink WDW and DL spending? What has made Parks and Resorts management decide that even though the parks are performing better then ever, MyMagic+ (a product that has been on the market for fast approaching three years) is suddenly going to sink spending?

Did they only just realize that they were missing projections?

Did they only just realize that Shanghai was expensive?

Did they only now realize that parks should go into crisis mode?

Perhaps most importantly, what changed between late last year (when they were going crazy expediting construction times and thinking about phase 3s and 4s) and now (they're in panic)?

To me the timing doesn't make sense to line up with MyMagic+. Why would Disney be totally reactionary about something that has been on market for years?

If I had to kick around a couple ideas about why Disney would be cutting some hours, workers, and entertainment:
1) Shanghai seems totally believable to me. Disney has said that they're targeting 300 million in pre-opening expenses. If that started to get out of hand, I see where they could try to compensate at Disneyland and Walt Disney World. Especially as Iger and Staggs were gloating about hiring thousands of new staff in Shanghai, staff that aren't revenue generating currently, cutting hours at domestic makes sense. So I find Shanghai operations totally understandable, especially if what you're saying about budgetary problems is correct. Though if it is Shanghai, this shouldn't be surprising and would've been on long term planning.
2) Disney is preparing to drastically refocus DAK towards the nighttime offerings. Keeping rides, shops, and restaurants open later is going to cost money. TDO likely doesn't want that to be very additive on current budgets. They seem to be compensating by reducing hours and employment at other parks. So in order to have longer hours at DAK that may involve less future world time. Not that trade off is necessary, but I would see that being logical.
3) Disney is preparing to add new attractions like RoL, Night safaris, SW fireworks, and Frozen. They're also working to add additional capacity at Toy Story and Soarin. It would make sense if they were trying to offset costs of those additional attractions by cutting some other offerings.
4) One other option that crosses my mind, is the coincidental timing of this. These cuts are taking place one year after Bob Chapek took over (happy 1st year anniversary today Bobby). If I took over a business I didn't really understand, I'd spend a year getting familiar with operations and making a list of things that I would want to change. At the very least, the one year mark is symbolic because it means you've moved beyond the learning phase. Bob implementing change for the sake of change in order to mark his turf is actually believable.

Those are off the top of my head. Disney freaking out because of MyMagic+ doesn't follow. They've had time to revise expectations down. Shanghai is totally reasonable. I do feel like there a whole mess of domestic factors that are being ignored though.

 

[emcclay]

I'm a former Cast Member with Cast Member friends. They ARE losing hours. I know somebody who was scheduled over 50 hours last week and 30 this week because of these cuts. And that's just one person. As for the unions, full time CMs at Disney are only guaranteed 32 hours a week, which is what it appears they have been reduced to. Part time CMs aren't guaranteed any. I don't see what the Unions can really do when TECHNICALLY, Disney isn't doing anything wrong.

I defend Disney quite a bit, probably more than a few people on this board. But even I can't defend this or ignore that this is real.

Sadly, in the new contract, FT is 30 hours a week. I know a handful of people that have been cut down to 30. They cannot cut a FT down to PT due to benefits. Every day I hear of different locations having their hours cut.

To the people that do not believe it or are assuming things have slowed down: It is happening and it is busy at WDW right now.

 

[peter11435]

Sadly, in the new contract, FT is 30 hours a week. I know a handful of people that have been cut down to 30. They cannot cut a FT down to PT due to benefits. Every day I hear of different locations having their hours cut.

To the people that do not believe it or are assuming things have slowed down: It is happening and it is busy at WDW right now.

Full time is still 32 hours per week in the new contract. Article 10, section 2.
If anyone is involuntarily being scheduled less than 32 hours they need to speak to their leaders or file a grievance.

 

[wogwog]

Disney just blinked. Some one at Disney with at least a room temperature IQ finally realized that one MSEP was horrid guest service so a second MSEP was just added for most days Mar 1 to 17. The rest of March is still only one. It is on the public guest calendar on Disney.com for those coming to WDW the first half of March.

 

[culturenthrills]

I think what is confusing to some of our newer members is why some of us long time member are so upset at these cuts. It is just not these cuts it is all the cuts over the years. WDW trimmed the fat a long time ago. We are now cutting into the bone. They are messing with the guest experience and it will be noticeable. I realize "Disney is a business" but when a business who has posted record profits keeps cutting something is wrong. And it is the frontline cast who apparently will pay the price.

 

[Disone]

Disney just blinked. Some one at Disney with at least a room temperature IQ finally realized that one MSEP was horrid guest service so a second MSEP was just added for most days Mar 1 to 17. The rest of March is still only one. It is on the public guest calendar on Disney.com for those coming to WDW the first half of March.

I honestly do not think that was a change. I have been watching the ELP calendar and there are a lot of two a days. Not sure it was a blink. I mention this in a prior post. But because someone with "insider information said", ELP is going to one a days, crowd be damn, its a blink or was it misinformation from the "inside" in the first place?

 

[DisneyJayL]

This is like going to a football game to watch soccer. Come on!

 

[wogwog]

I honestly do not think that was a change. I have been watching the ELP calendar and there are a lot of two a days. Not sure it was a blink. I mention this in a prior post. But because someone with "insider information said", ELP is going to one a days, crowd be damn, its a blink or was it misinformation from the "inside" in the first place?

A blink. I live in a community with lots of WDW mid level Mgrs who already scheduled next week for one parade, who are now having to go back and make a new labor schedule. The one parade schedule was already posted to the cast schedules on the Hub. I trust the information as several Mgrs are in my poker circle.

Expect more embarrassing blinks as the decision to cut as much as they have is just plain stupid with no regard for the guests or cast.

 

[PhotoDave219]

Most around here liked him back then when he was replacing Eisner, whom most despised by then. I know because I was actually a member back then, unlike some...

Yes, I remember. You've changed a lot since those days. For the good, I mean.

 

[PhotoDave219]

Sadly, in the new contract, FT is 30 hours a week. I know a handful of people that have been cut down to 30. They cannot cut a FT down to PT due to benefits. Every day I hear of different locations having their hours cut.

To the people that do not believe it or are assuming things have slowed down: It is happening and it is busy at WDW right now.

When I get a few, I'll look at crowd levels again.

They should've never excepted that contract but they got all the housekeepers to push it thru. All the teamsters voted against it

 

[wannabeBelle]

I think what is confusing to some of our newer members is why some of us long time member are so upset at these cuts. It is just not these cuts it is all the cuts over the years. WDW trimmed the fat a long time ago. We are now cutting into the bone. They are messing with the guest experience and it will be noticeable. I realize "Disney is a business" but when a business who has posted record profits keeps cutting something is wrong. And it is the frontline cast who apparently will pay the price.

Exactly so Photo, Also what is confusing to me is why take a great model that is making money and trim so much that the things that made them successful is the very thing that is being sacrificed? Not a good idea, if you want to keep making that money. Marie

 

[asianway]

When I get a few, I'll look at crowd levels again.

They should've never excepted that contract but they got all the housekeepers to push it thru. All the teamsters voted against it

Teamsters could bring George to his knees, they have leverage the need to push harder

 

[DVCOwner]

Where is the Union in this. If things are this bad way is the Union not all over the press and making noise?

 

[Goofyernmost]

Basically, there are multiple thresh holds. You have to have minimum years of service (10 and 15 are the levels, plus there are grandfathered in people who get lifetime medical, i think something like having started before 1998 or something, can't remember). But in addition to that, it sounds like there might be a rolling hours check. So you need to have worked something like 780 hours, in the six months prior to retirement. (that's 24 weeks at 32 hours, just a guess)

It sounds like raven's friend currently has hit that hours mark, but he may not be guaranteed to hit it in the next six months.

Thank you and yes. I don't know the logistics of it but that's probably along the same lines.

So, knowing future plans they tell a loyal 30 year employee (cast member by any other name) that it would be to their benefit to perhaps leave earlier so that they can get the benefits. Yup, now there is an evil company. How mean. Suggesting that they leave a few months early so that they can get out with what they have earned. Terrible! Heartless!

Seriously, it's a wonder that most of you folks don't break something jumping to conclusions based on your own distorted idea of what reality is. As Paul Harvey used to say... "And now for the rest of the story". It might behoove a lot of you to try and find out the "rest of the story" before leaping immediately to righteous indignation.

 

[VJ]

I suggest an executive-level viewing of Mary Poppins for Iger and co.

They need to know what exactly "Feed the Birds" means and why it's contradictory to their current actions.

 

[marni1971]

So why are we only now hearing that these two known problems are going to sink WDW and DL spending?.

Because it's only now that a) they're taking a more aggressive approach since previous attempts didn't work and b) new Bob is trying a show of force.

Speaking from my limited knowledge - I'm sure others can chime in with more - price rises and far more upcharge events and options didn't work. It's only now there's a realisation previous ideas to make money back wouldn't work.

Ask Rasulo. Oh. You can't.