Disney plans resorts reorganization, layoffs

[BuddhasHomeGirl]

Disney plans resorts reorganization, layoffs

Jason Garcia |Sentinel Staff Writer7:51 PM EST, February 18, 2009
The Walt Disney Co. on Wednesday said it would eliminate an undisclosed number of jobs as part of a sweeping corporate overhaul at its domestic resorts, which includes plans to combine back-office operations at Walt Disney World and Disneyland.

Disney would not say how many jobs it intends to cut or how much money it expects to save through the moves. The company employs about 80,000 people at its U.S. resorts, including 62,000 in Central Florida.

With the shakeup, Disney will consolidate East and West Coast "operating infrastructure" - responsibilities ranging from procurement to menu-planning to merchandise - under Al Weiss, the president of worldwide operations for Walt Disney Parks and Resorts.

The plans also call for uniting disparate creative engineering and business development units under single executives.
In a written statement, Disney said it was forced to speed up corporate streamlining plans by the worsening global recession, which has eroded revenue at its theme parks and elsewhere across the Burbank, Calif.-company's media-and-entertainment empire.

"These changes are essential to maintaining our leadership position in family tourism and reflect today's economic realities," Parks and Resorts Chairman Jay Rasulo said in the statement.In a separate memo to employees Wednesday, Rasulo wrote that "organization changes require difficult decisions, including the elimination of some roles.

"These decisions were not made lightly and we know this will be a challenging transition. The people affected are our friends and colleagues, and they have made valuable contributions," Rasulo added in the memo.

The announcement comes the same month Disney revealed that its first quarter profits fell 32 percent. Operating profit in the parks-and-resorts division fell 24 percent during the three-month period, which ended Dec. 27.

It also follows Disney's decision last month to offer buyouts to more than 600 executives at its domestic resorts. A spokesman said Disney received "a satisfactory response" to the offer, though Disney declined to say how many executives took the buyouts.

John Gerner, managing director of Leisure Business Advisors, a Richmond, Va., consultant firm, said Disney will likely be able to make deep cost cuts by consolidating operations.

"I think it definitely has quite a lot of potential for savings. 5As far as the theme parks go, there's definitely economies of scale in being able to merge all those operations together to the extent that they can and centralize them," Gerner said.

But Gerner said Disney, which relies on a constant infusion of fresh content to fuel everything from park attendance to DVD sales, must not cut too deeply in creative areas.

"They've got to be careful because there are so many very specialized people that work for Disney, especially on the creative side, that would be very difficult to replace once things turn around," Gerner said. "That's what a lot of creative companies, not only Disney, have to rely on."

In addition to steering "operating infrastructure" at the Orlando and Anaheim, Calif., parks through Weiss, Disney said that its Walt Disney Imagineering unit would be reorganized into a single practice reporting to Bruce Vaughn, executive vice president and chief creative executive, and Craig Russell, executive vice president and chief design and project delivery executive.

The company also said it would establish a new "Global Business Development team" headed by Executive Vice President Nick Franklin, which will be charged with combining existing business and real-estate development functions. The unit be will responsible for focusing growth strategies at existing parks-and-resorts businesses and identifying new opportunities around the globe. Vaughn, Russell and Franklin are all based in California.

Disney said other departments will make "appropriate changes" in the coming weeks.

As an example of what it hopes to achieve through the streamlining, Disney pointed to the simultaneous development of Toy Story Mania! attractions at both Disney's Hollywood Studios in Orlando and Disney's California Adventure in Anaheim, which helped hold down design costs.

The corporate overhaul means fewer employees will now report directly to Meg Crofton, president of Walt Disney World, and Ed Grier, president of Disneyland. But the two executives will continue to oversee the functions at their respective parks that deal directly with customers, employees and the local communities.

http://www.orlandosentinel.com/business/orl-bk-disney-reorg-021909,0,1094627.story

 

[lightboy]

::sigh::

I have a feeling there will be a lot more of this...that will eventually reach front-line cast members.

Put those cast members on the streets to save a buck. Ugh.
I wish companies would realize putting employees on the street only adds to this country's unemployment rate, which in full circle, will affect them down the road. They are only helping the economy's recession.

This kind of horrible lump in the back of CMs throats probably isn't going to help the customer service during YOUR next vacation. Wages are down, hours are down, overtime is eliminated. Take it easy on your friendly neighborhood cast members...this is NOT the year to celebrate.

 

[gatorcard83]

Here's one CM looking for a layoff or buyout.

I am currently a front line Cast Member in Concierge and I for one hope this reaches front line Cast Members. This is going to completely sound wrong, but I am glad to hear this news. I love Disney and I love all of the memories that I have as a guest here, but most of my good memories are as a guest. I want to be able to experience that magic again. Simply put, I have lost the ability to see the magic of Disney by working here, and with the combination of low wages, horrible hours, no scheduling consistency, and a general lack of a personal life, I am looking to get out.

With that said, like many CM's I have parents who love Disney (particularly my mom) and they always are pushing me not to ever leave. I am also scared of leaving because if I self-term I get nothing in terms of compensation or benefits This announcement could very well be my way out. They can't say anything if I am laid off from the company. If this layoff reaches front line CM's then I will probably be gone, as I transferred to Concierge from an Office and Technical Role and have next to no seniority(my O&T role was a temporary assignment, I did not want to leave). Not only that, but then I get compensation and benefits in terms of unemployment for at least 6 months. I could also go back to school part-time (not full-time because then you lose unemployment), do some long overdue traveling, and still be on unemployment.

I am also looking to start my own production company in partnership with several other people out in California. We have been putting a business plan together and I am working with those partners who are already out in California until we get the foundation up and running (I will then move to California).

What I am torn about right now is if I should go to my leadership right now and tell them that I am looking to get laid off or for a buy out. I am under union protection so they can not fire me just for bringing up the option, and this would allow them to save money long term (by bringing in a CP or IP to take my place or just not filling my position). This would not only make me happy but it could also save someone else who really wants to stay with the company.

So as weird as it sounds, I like this news. This could be my way out of the mouse trap (as so many CM's like to call it).

 

[GothMickey]

I am currently a front line Cast Member in Concierge and I for one hope this reaches front line Cast Members. This is going to completely sound wrong, but I am glad to hear this news. I love Disney and I love all of the memories that I have as a guest here, but most of my good memories are as a guest. I want to be able to experience that magic again. Simply put, I have lost the ability to see the magic of Disney by working here, and with the combination of low wages, horrible hours, no scheduling consistency, and a general lack of a personal life, I am looking to get out.

With that said, like many CM's I have parents who love Disney (particularly my mom) and they always are pushing me not to ever leave. I am also scared of leaving because if I self-term I get nothing in terms of compensation or benefits This announcement could very well be my way out. They can't say anything if I am laid off from the company. If this layoff reaches front line CM's then I will probably be gone, as I transferred to Concierge from an Office and Technical Role and have next to no seniority(my O&T role was a temporary assignment, I did not want to leave). Not only that, but then I get compensation and benefits in terms of unemployment for at least 6 months. I could also go back to school part-time (not full-time because then you lose unemployment), do some long overdue traveling, and still be on unemployment.

I am also looking to start my own production company in partnership with several other people out in California. We have been putting a business plan together and I am working with those partners who are already out in California until we get the foundation up and running (I will then move to California).

What I am torn about right now is if I should go to my leadership right now and tell them that I am looking to get laid off or for a buy out. I am under union protection so they can not fire me just for bringing up the option, and this would allow them to save money long term (by bringing in a CP or IP to take my place or just not filling my position). This would not only make me happy but it could also save someone else who really wants to stay with the company.

So as weird as it sounds, I like this news. This could be my way out of the mouse trap (as so many CM's like to call it).

I am sorry you feel that way about working at WDW. But, why hope it does trickle down to CMs? Because you want out?? Then QUIT!!! DOn't wish other CMs lose their jobs because YOU aren't happy. No one forced you to work there. No one forces you to stay there. Write a letter of resignation today, give it to your boss tomorrow and be done with it.

 

[BuddhasHomeGirl]

I think you are very honest Gator and I hope you do get what you are hoping for. Good Luck.

 

[SirGoofy]

So as weird as it sounds, I like this news. This could be my way out of the mouse trap (as so many CM's like to call it).

Speak for yourself. I work for the mouse and love every minute of it, as do most of the people I work with. Even when I was a CP I enjoyed coming to work.

If you don't enjoy it, quit. There's plenty of people who would be happy as heck to have your job.

 

[gatorcard83]

I am sorry you feel that way about working at WDW. But, why hope it does trickle down to CMs? Because you want out?? Then QUIT!!! DOn't wish other CMs lose their jobs because YOU aren't happy. No one forced you to work there. No one forces you to stay there. Write a letter of resignation today, give it to your boss tomorrow and be done with it.

Have you worked for Disney before? If you have, you know it's a complete 180 between the guest experience and the employee experience.

Simple answer to your question though:

Voluntary Quit = Nothing in terms of compensation or benefits
Layoff = 6 months of compensation and benefits

I need that compensation money (even though I have more money in my bank account than probably 80% of hourly front-line CM's) while I develop my partnership LLC and go back to school for HR Certification and possibly grad school (nevermind it gives me 6 months to find a job in this economy, I already have several feelers with other hotels in the area). Simply put, they haven't made it easy on me, I am not going to make it easy on them, yet.

 

[SirGoofy]

Have you worked for Disney before? If you have, you know it's a complete 180 between the guest experience and the employee experience.

Again, speak for yourself.

 

[fosse76]

Union protection doesn't mean they can't fire you. And it's always a case-by-case basis. Unions don't automatically defend members who get fired. If you are unhappy, then quit. They won't be offering buyouts to frontline CMs. They'll simply fire them.

 

[WDWFigment]

Anyway, I wonder what implications this will have on the guest experience?

Will it be a positive one for WDW, that sees the positives of DLR trickle to WDW, or;

Will it be one that further homeogenizes, bringing more generic merchandise, celebrations, and food?

I'm hoping for the former, but I'm betting on the latter. I really doubt the individuals who will do work for both resorts are at a higher enough level to make an impact on anything other than t-shirt and cup designs.

Any ideas?

 

[Enigma]

I am currently a front line Cast Member in Concierge and I for one hope this reaches front line Cast Members. This is going to completely sound wrong, but I am glad to hear this news. I love Disney and I love all of the memories that I have as a guest here, but most of my good memories are as a guest. I want to be able to experience that magic again. Simply put, I have lost the ability to see the magic of Disney by working here, and with the combination of low wages, horrible hours, no scheduling consistency, and a general lack of a personal life, I am looking to get out.

With that said, like many CM's I have parents who love Disney (particularly my mom) and they always are pushing me not to ever leave. I am also scared of leaving because if I self-term I get nothing in terms of compensation or benefits This announcement could very well be my way out. They can't say anything if I am laid off from the company. If this layoff reaches front line CM's then I will probably be gone, as I transferred to Concierge from an Office and Technical Role and have next to no seniority(my O&T role was a temporary assignment, I did not want to leave). Not only that, but then I get compensation and benefits in terms of unemployment for at least 6 months. I could also go back to school part-time (not full-time because then you lose unemployment), do some long overdue traveling, and still be on unemployment.

I am also looking to start my own production company in partnership with several other people out in California. We have been putting a business plan together and I am working with those partners who are already out in California until we get the foundation up and running (I will then move to California).

What I am torn about right now is if I should go to my leadership right now and tell them that I am looking to get laid off or for a buy out. I am under union protection so they can not fire me just for bringing up the option, and this would allow them to save money long term (by bringing in a CP or IP to take my place or just not filling my position). This would not only make me happy but it could also save someone else who really wants to stay with the company.

So as weird as it sounds, I like this news. This could be my way out of the mouse trap (as so many CM's like to call it).

Your a good honest american and I wish you the best of luck in the future.

This orlando sentinel article is the best news I have heard since Steve Jobs & John Lasseter came aboard at the company. I think its not enough thouhg Iger needs to fire the REAL dead wood like Rasolu, crofton, weiss, holmes, and grier.

 

[gatorcard83]

Union protection doesn't mean they can't fire you. And it's always a case-by-case basis. Unions don't automatically defend members who get fired. If you are unhappy, then quit. They won't be offering buyouts to frontline CMs. They'll simply fire them.

You are right on all accounts, union protection doesn't mean they can't fire me. I also agree that they will not offer buyouts to front line CM's. With that said, they simply can't fire CM's without just cause, you should know that. My record card has more GSF cards than Call Ins, I haven't had a reprimand for attendance since my CP back in 2004. I have had no issues with management or other CM's in any area that I have worked, so no one has an ax to grind against me. Simply put, they have no evidence to fire me, they can only lay me off due to the economy, and of course layoff means 6 months compensation, that is what I am looking for. If they try to fire me due to the economy without just cause, then I'll be getting a lawyer. They can layoff anyone at any time, but Disney is not exempt from federal law. If they have to layoff, they have to provide the compensation.

 

[gatorcard83]

Your a good honest american and I wish you the best of luck in the future.

This orlando sentinel article is the best news I have heard since Steve Jobs & John Lasseter came aboard at the company. I think its not enough thouhg Iger needs to fire the REAL dead wood like Rasolu, crofton, weiss, holmes, and grier.

I agree that this is great news. I also agree that those individuals need to go, especially Holmes, Crofton, and Grier, they add nothing to the company at all. I could care less about Iger, he is nothing to this company. Iger was meant to be the opposite of Eisner, someone who would just blend in and be the spokesperson for the company. This company was built on creativity and innovation, but in the current company none of that exist thanks to these individuals. Unfortunately they will keep their cushy jobs, others will have to take the ax.

 

[lightboy]

Oh boy. I knew that was coming.

SirGoofy...what I think you fail to realize...is that Disney is a job for a lot of people. It's not a life experience, as it is for you. You'd be perfect on a radio casting commercial.

I'm not going to categorize myself in either category. However, I'm going to bring out both sides.

A job is a place where one goes to work and make money. Years ago, before you were a cast member, Disney upped the experience, and really made it magical for cast members. However, greed and politics prevailed. It's not what it used to be. Many things that Gator discusses didn't use to be.

But...again, it's a job. And right now, people can't just quit and leave, because frankly, there's no other jobs out there. So they have to stay and make the same $7 an hour. Rooming with 3-4 people to make ends meet. For many people (obviously you're not one of them)...that reduces the quality of life.

Saying that, I'm incredibly happy that you can't wait to go to work everyday. That's a GREAT THING when you do what you love...and I encourage everyone to do the same...if they are able.

There will always be Disney nuts...and I'm NOT saying that negatively. Ones that work at work, play at work, and spend their off days at work....and yes...even post messages about work on the internet! haha

But don't hold it against the ones that work to make money, to make a living, and/or to provide for a family. Which is what the majority of front-line full-time (non-CP) cast members work for.

Again, love that you love your job. I love mine...but at the end of the day...it's about the paycheck that arrives on Thursday. And without it, I'd be in a whole heap of trouble.

 

[lightboy]

your a good honest american and i wish you the best of luck in the future.

This orlando sentinel article is the best news i have heard since steve jobs & john lasseter came aboard at the company. I think its not enough thouhg iger needs to fire the real dead wood like rasolu, crofton, weiss, holmes, and grier.

agreeeeeeeed!!!

 

[lightboy]

You are right on all accounts, union protection doesn't mean they can't fire me. I also agree that they will not offer buyouts to front line CM's. With that said, they simply can't fire CM's without just cause, you should know that. My record card has more GSF cards than Call Ins, I haven't had a reprimand for attendance since my CP back in 2004. I have had no issues with management or other CM's in any area that I have worked, so no one has an ax to grind against me. Simply put, they have no evidence to fire me, they can only lay me off due to the economy, and of course layoff means 6 months compensation, that is what I am looking for. If they try to fire me due to the economy without just cause, then I'll be getting a lawyer. They can layoff anyone at any time, but Disney is not exempt from federal law. If they have to layoff, they have to provide the compensation.

Do be careful though and mind your p's and q's!

Although they can layoff and furlough due to a weakening economy...you're right, and they can't fire you for the same.

But, what they have already started to do, is watching Cast Members a LOT closer. Clocking, attendance, tardiness will be dealt with to the maximum punishments of your union contract. They'll be starting to look for the CMs that they CAN fire for just cause.

...some of them deserve it...not going to lie! haha But there are good and great ones out there that truly make magic daily for our guests despite work conditions backstage!

 

[Bug715]

I am sorry you feel that way about working at WDW. But, why hope it does trickle down to CMs? Because you want out?? Then QUIT!!! DOn't wish other CMs lose their jobs because YOU aren't happy. No one forced you to work there. No one forces you to stay there. Write a letter of resignation today, give it to your boss tomorrow and be done with it.

I agree!! I know many people who have completed a Professional Internship then have had to find work outside the company. You are occupying a position that they need/want.

You are the type of CM I don't like, the one who doesn't want to be there. My friends and I have talked about many CMs who don't make vacations magical because they don't like their jobs. I can't imagine ever working for a place that I didn't like. That happened once to me and I left.

I don't know how your area works but I have friends who have left the company for other jobs and don't have a no rehire status.

 

[GothMickey]

Have you worked for Disney before? If you have, you know it's a complete 180 between the guest experience and the employee experience.

Simple answer to your question though:

Voluntary Quit = Nothing in terms of compensation or benefits
Layoff = 6 months of compensation and benefits

I need that compensation money (even though I have more money in my bank account than probably 80% of hourly front-line CM's) while I develop my partnership LLC and go back to school for HR Certification and possibly grad school (nevermind it gives me 6 months to find a job in this economy, I already have several feelers with other hotels in the area). Simply put, they haven't made it easy on me, I am not going to make it easy on them, yet.

I never worked for Disney but I have friends who do. I know how it is cause they tell me. But, they don't wish for layoffs because that means OTHERs lose their jobs. Again, no one put a gun to your head and said YOU MUST WORK FOR DISNEY!!! You chose to work there. You choose to stay despite beimg unhappy. Your fault, no one else's. So hoping for others to lose their jobs so you can lose yours is down right pathetic and selfish.

 

[gatorcard83]

I agree!! I know many people who have completed a Professional Internship then have had to find work outside the company. You are occupying a position that they need/want.

You are the type of CM I don't like, the one who doesn't want to be there. My friends and I have talked about many CMs who don't make vacations magical because they don't like their jobs. I can't imagine ever working for a place that I didn't like. That happened once to me and I left.

I don't know how your area works but I have friends who have left the company for other jobs and don't have a no rehire status.

You are also a type of CM that I do not like, the type that believes that some people are entitled to positions just because they are Disney freaks. Let me inform you about me, I was in the position a year ago that some of your friends are in now. I had completed a professional internship and had to find something else. I did not have anything lined up until 3 days after my professional internship had ended, and I only got my position with a lot of networking and some luck.

As for your friends talking about CM's who don't make vacations magical, they need to take that up with Disney Corporation, the ones who control our wages. I like how we are expected to make everyone's dream come true, yet we have to work in deplorable conditions and live with 3 and 4 roommates. When is our dream going to come true, a livable wage? Just to let you know, I am considered one of the better CM's in my area. I leave my personal opinion of the company at the door and try my best to help the guest, but it's hard sometimes when you don't know how you will make your car payment that month.

It's really easy to say that you can just quit, I used to say the same thing when I was a CP and loved the company. Bills just don't stop just because you leave your job, which forces many of us to stay in jobs we do not like. I am trying to get out, but I have to have something lined up before I leave or have unemployment.

Just because you could quit the job you dislike on a dime doesn't mean everyone can. I don't pretend to know your situation, don't pretend to know mine.

 

[lightboy]

I agree!! I know many people who have completed a Professional Internship then have had to find work outside the company. You are occupying a position that they need/want.

You are the type of CM I don't like, the one who doesn't want to be there. My friends and I have talked about many CMs who don't make vacations magical because they don't like their jobs. I can't imagine ever working for a place that I didn't like. That happened once to me and I left.

I don't know how your area works but I have friends who have left the company for other jobs and don't have a no rehire status.

I don't think I'd categorize him as not wanting to be there. Try to go easy on the guy. Not sticking up for anyone...trying to stay neutral here. I'm trying to quit the bashing and bickering before it starts! Let's all respect everyone's opinions.

You see. I know MANY great cast members that love their jobs and make the most magical experiences for the guests. But backstage they get trashed on over and over again. Whether it be by power-hungry managers, corporate greed, lack of promotion, reduced hours, low wages, or even overpriced cafeteria food (yes, YOU know what I'm talking about!! haha). Yet, the guest would NEVER know it, because they paint on that Disney smile the best they can and "make the magic".

...True. Some do it better than others.

But that kind of stuff is enough to wear down even the best over a long period of time. Enough to make it not as magical...but that's going to vary from work location to work location.

And because of the economy and lack of a job market right now...that may prohibit many from leaving and persuing other things. Because again, it's about the paycheck when the day is done.