Disney plans hiring freeze, some jobs cut......

[TP2000]

I mean, I hate layoffs. I hate all the recession talk. I hate stock markets and quarterly earnings and this mindset of making every quarter better than the next (which usually means cutting costs).

BUT,

This isn’t a Disney only problem. And hiring freezes / lay offs are happening globally.

Companies are cutting back on projects like crazy, all over.

On the flip side, recessions can be healthy for the system. A recession flushes out old, unloved inventory and brings clarity to financial decisions that were often made unwisely during boom years. It's healthy when a recession comes along after years of growth.

With only a few post-war exceptions, we used to have recessions every couple years, see-sawing back and forth between growth and contraction. But since the 1980's when the Reagan administration finally tamed inflation, recessions have been much rarer and usually only come along once per decade or so.

I can think of several outcomes to this cutback/layoff situation in Burbank that would make Disney better overall. That is, if the layoffs and cutbacks are done with smarts and savvy and a focus on improving the customer experience, especially in the parks.

I'm probably giving them too much credit that the current executive team can handle that though.

 

[CaptainAmerica]

True, but what's the goal there now I wonder? Did Burbank seriously give up on the Lake Nona concept of moving thousands of employees from California to Florida? It's cheaper for the company long-term to have those employees in Florida, which was the point of it all.

It's still cheaper long-term. And Ron DeSantis was re-elected in a landslide four days before Chapek had to release his memo announcing cutbacks and hiring freezes and coming layoffs.

The whole thing seems really silly to me. Especially at a company that is now in minor crisis mode.

As far as I can tell, the intent is the same as it always was. Move to Florida to save money. The delay was just a stunt to appease some employees having a temper tantrum.

 

[TP2000]

As far as I can tell, the intent is the same as it always was. Move to Florida to save money. The delay was just a stunt to appease some employees having a temper tantrum.

Ah, I see your point now. And I agree.

I just wonder if this current cutback/layoff situation will force that delay to continue because it saves money short-term, or will accelerate a plan to restart Lake Nona because it saves money long-term.

I would think if they really do want to restart Lake Nona moves and tell Californians they are being moved to Florida, doing so a few weeks after you see some co-workers get walked out to their car with their stuff in a box would be a good time to do it.

The Cubicle Kidz who stomped around and protested their own company in Burbank earlier this year must be doing some thinking about now...

 

[CaptainAmerica]

Ah, I see your point now. And I agree.

I just wonder if this current cutback/layoff situation will force that delay to continue because it saves money short-term, or will accelerate a plan to restart Lake Nona because it saves money long-term.

I would think if they really do want to restart Lake Nona moves and tell Californians they are being moved to Florida, doing so a few weeks after you see some co-workers get walked out to their car with their stuff in a box would be a good time to do it.

The Cubicle Kidz who stomped around and protested their own company in Burbank earlier this year must be doing some thinking about now...

So I think this is all accidentally working out for them. Not quite as they planned, but almost better in some ways.

When the move was announced, they knew they'd lose some people who weren't willing to make the move. But they lost WAY more people than they expected to. At first, I think it was an "oh crap" moment where they panicked a little bit because they had a lot of headcount to fill. But now, that open headcount is a blessing. It's a lot cheaper to have Californians resign and hire Floridians a year from now (at Floridian wages) than it would have been to relocate Californians to Florida and keep paying them Californian wages. Especially when you what to cut costs anyways.

 

[Sirwalterraleigh]

WDW has no one like Zenia Mucha to direct the traffic any longer…. Mistakes will be made (seen)

Yeah…except she was part of the disease that sells excuses to all these fools who apparently got a C- minus in micro

 

[MrPromey]

So I think this is all accidentally working out for them. Not quite as they planned, but almost better in some ways.

When the move was announced, they knew they'd lose some people who weren't willing to make the move. But they lost WAY more people than they expected to. At first, I think it was an "oh crap" moment where they panicked a little bit because they had a lot of headcount to fill. But now, that open headcount is a blessing. It's a lot cheaper to have Californians resign and hire Floridians a year from now (at Floridian wages) than it would have been to relocate Californians to Florida and keep paying them Californian wages. Especially when you what to cut costs anyways.

If only talent were a commodity the way a management team, completely lacking it, themselves, always likes to think it is.

 

[CaptainAmerica]

If only talent were a commodity the way a management team, completely lacking it, themselves, always likes to think it is.

It literally is. Nobody they lost is irreplaceable. All of the actually irreplaceable people were put out to pasture a decade ago.

 

[bcoachable]

Yeah…except she was part of the disease that sells excuses to all these fools who apparently got a C- minus in micro

But she was really really good at it… haha

 

[Goofnut1980]

Someone may have said it. Get rid of the top brass. That will save a lot.

 

[JoeCamel]

So I think this is all accidentally working out for them. Not quite as they planned, but almost better in some ways.

When the move was announced, they knew they'd lose some people who weren't willing to make the move. But they lost WAY more people than they expected to. At first, I think it was an "oh crap" moment where they panicked a little bit because they had a lot of headcount to fill. But now, that open headcount is a blessing. It's a lot cheaper to have Californians resign and hire Floridians a year from now (at Floridian wages) than it would have been to relocate Californians to Florida and keep paying them Californian wages. Especially when you what to cut costs anyways.

There is a little place up the street looking to hire those same Floridians. Which sounds better helping build a brand spanking new park with all the latest whiz bang toys or work on Peter Pan?

 

[MrPromey]

It literally is. Nobody they lost is irreplaceable. All of the actually irreplaceable people were put out to pasture a decade ago.

You're dong that thing again where you seem to be arguing against something I didn't say.

Why do you do that?

BTW, which is it? "It litereally is" or some people are "irreplaceable"?

I'd personally suggest the last several years of output, at least domestically would suggest very much the latter or we'd be seeing better than we have.

 

[Sirwalterraleigh]

I got $1 says they'll be forced to resurrect Free Dining

Of course…because it was a bit of a bait and switch

That helps them

 

[Sirwalterraleigh]

You're dong that thing again where you seem to be arguing against something I didn't say.

Why do you do that?

BTW, which is it? "It litereally is" or some people are "irreplaceable"?

I'd personally suggest the last several years of output, at least domestically would suggest very much the latter or we'd be seeing better than we have.

I think you shoulda stopped at “you’re dong”

 

[CaptainAmerica]

You're dong that thing again where you seem to be arguing against something I didn't say.

Why do you do that?

BTW, which is it? "It litereally is" or some people are "irreplaceable"?

I'd personally suggest the last several years of output, at least domestically would suggest very much the latter or we'd be seeing better than we have.

Read it again. I said that none of the people quitting because of the Florida move are irreplaceable. I never said that there are no irreplaceable people.

 

[CaptainAmerica]

There is a little place up the street looking to hire those same Floridians. Which sounds better helping build a brand spanking new park with all the latest whiz bang toys or work on Peter Pan?

We'll see how this ages.

 

[MrPromey]

Read it again. I said that none of the people quitting because of the Florida move are irreplaceable. I never said that there are no irreplaceable people.

I think it might be you who needs to go back and read what I originally said.

I'll help you out - here it is:

If only talent were a commodity the way a management team, completely lacking it, themselves, always likes to think it is.

The very first words you then followed up with were:

It literally is...

What counterpoint to what I said are you trying to make?

_

 

[lazyboy97o]

There is a little place up the street looking to hire those same Floridians. Which sounds better helping build a brand spanking new park with all the latest whiz bang toys or work on Peter Pan?

Universal already hired up for Epic Universe, then they fired almost everyone and have hired up again. The thing about project-based worked is that people end up moving around.

 

[matt9112]

People always seem to default “they know what there doing” when in fact companies will publicly say they are doing ok or a more intricate line at the same time shredders are working over time in the back. All companies even the best lie….they project strength and prowess to the very end. How do you think employees legitimately show up to doors being closed etc. it is a sudden and dramatic event.

 

[Elijah Abrams]

Agree with the rest of your post, but I'll nitpick this point. Fox was necessary to make Hulu (and by extension the Disney Bundle) a legit competitor with Netflix. The content that FX provides to Hulu is consistently excellent.

Except that Disney is thinking of putting Hulu out to pasture once they acquire Comcast's stake in it.

 

[CaptainAmerica]

Except that Disney is thinking of putting Hulu out to pasture once they acquire Comcast's stake in it.

The point remains. Disney had a gap in their content factory. They had news, sports, unscripted (reality), kids, and family. They didn't have adult scripted series or documentary. FX and NatGeo provide those categories. They needed to fill those gaps regardless of whether they plan to keep Hulu long term or if they plan to integrate it all into the Disney+ app like they do internationally.