Disneyland and Disney World lay off 28,000 employees amid pandemic struggles - OCR/SCNG

[flutas]

He literally said they are not making sny money off these events.

Making a profit does not equal making money.

Knott's is said to be in the same boat; their recent food festivals made no profit, it just keeps the park barely operating and a core group of employees still connected. Knott's is simply trying to survive until next summer.

Now, if I know TP2000 like I think I do... he's very good at using his words in a direct and specific meaning.

"made no profit" does not mean it did not net the company any money.

If Knott's costs $50k a day to sit there, and the food festival is an additional $25k a day to run. If they sell over $25k in tickets for that day, they made no net profit, but it did help offset the costs of the park.

 

[truecoat]

Making a profit does not equal making money.



Now, if I know TP2000 like I think I do... he's very good at using his words in a direct and specific meaning.

"made no profit" does not mean it did not net the company any money.

If Knott's costs $50k a day to sit there, and the food festival is an additional $25k a day to run. If they sell over $25k in tickets for that day, they made no net profit, but it did help offset the costs of the park.

And it keeps people employed. They don't find other jobs for when you really need them which sounds like next year. When Disneyland reopens, it'll probably have to open at reduced capacity until it can hire and train enough people to replace the ones that found other jobs.

 

[TP2000]

Some people I know have made to move to get out of CA. Some going to Austin and Dallas TX areas.

Sure. And watch all those transplanted Californian 40somethings who want the low taxes and 3,200 square foot house with big yard and 3 car garage in Austin instead of the high taxes and 2,100 square foot house with 2 car garage and tiny yard in Mission Viejo all start voting for Democrats again for the next 20 years until Texas is just as screwed up as California is after 25 years of majority Democrat rule.

But I digress...

Now, if I know TP2000 like I think I do... he's very good at using his words in a direct and specific meaning.

"made no profit" does not mean it did not net the company any money.

If Knott's costs $50k a day to sit there, and the food festival is an additional $25k a day to run. If they sell over $25k in tickets for that day, they made no net profit, but it did help offset the costs of the park.

I'm genuinely flattered that you think I'm as specific you think I am. But I'm afraid the reality is far from the assumption you have of me. I'm just an old guy in his den sounding off into the ether, using a decent bit of life experience and a good glass of Scotch as my fuel. (With the exception of that one time 20 years ago when I took over the Internet for a few decades as the world's first Influencer and ghost-writed all of Al Lutz's stuff to overthrow Michael Eisner and elevate Bob Iger to his rightful place on the throne, of course. That time, I was totally on it. I nailed it!)

When I said "made no profit", I am merely repeating what I was told in the dishy OC corner of a Rancho Mirage cocktail party last weekend. Knott's has made no profit with their recent food festival things. They are simply covering payroll and keeping the basic bills paid, but with a long-term loss on their investment. They can't continue like this. They need to turn back into a busy theme park by next spring or they will close. This isn't a business model that works for them in the 21st century. Nor is it a business model that works for Disneyland, or any other theme park in California.

I know it's fashionable to think that all these big, evil Capitalist companies are sitting on piles of cash that they just refuse to share with anyone. But the reality is a tad different. A company can not stay closed for a year while simultaneously paying employees to not sell the product the company was designed to sell. After eight to twelve months of that, even the biggest and swankiest of companies will simply stop existing.

In a Capitalist Free-Market economy, a company can not exist by not selling the product it was designed to sell.

 

[1HAPPYGHOSTHOST]

Making a profit does not equal making money.



Now, if I know TP2000 like I think I do... he's very good at using his words in a direct and specific meaning.

"made no profit" does not mean it did not net the company any money.

If Knott's costs $50k a day to sit there, and the food festival is an additional $25k a day to run. If they sell over $25k in tickets for that day, they made no net profit, but it did help offset the costs of the park.

Hmm... I understand better now.

 

[truecoat]

Man that allegation about you working for Iger was hillarious. It's especially silly when you think how Micechat and Al Lutz continued to be just as critical of Disney after Iger took over.

It's really sad that this has become a lost year, and it being 2021 soon wont magically solve things either, like many believe.

I'm amazed the governor has not been recalled at this point. The damage he has done will last a very long time.

He won't be recalled because his approval rating is high enough.

 

[MisterPenguin]

He won't be recalled because his approval rating is high enough.

Wait. Are you saying that AP holders aren't the vast majority of California citizens??!!

 

[truecoat]

Wait. Are you saying that AP holders aren't the vast majority of California citizens??!!

I'm not sure I should answer this here without a mental health professional on stand by.

 

[LastoneOn]

I'm sure it'll be cheaper for them but Texas is no California.

But they're doing their best to convert it.

 

[Stevek]

So Joe Rhode has officially retired from Disney after 40 years. I wonder if this was a mutual parting ?

 

[Communicora]

So Joe Rhode has officially retired from Disney after 40 years. I wonder if this was a mutual parting ?

I would imagine they offered him a buy out. It's not at all uncommon with companies and institutions even during better economic times.

 

[DCBaker]

"Disneyland plans to furlough nearly 1,800 additional employees in the wake of COVID-19 reopening guidelines from Gov. Gavin Newsom’s administration that have left California theme parks closed for the “foreseeable future.” Disney announced 1,797 furloughs of Disneyland union and non-union employees due to continuing business impacts of the COVID-19 pandemic as part of the Worker Adjustment and Retraining Notification Act, known as the WARN Act. Disney filed the WARN Act notifications on Nov. 12 with the furloughs set to start on Nov. 23 and on subsequent dates through Feb. 21"

"The furloughs will impact a wide range of jobs including landscapers, engineers, painters, plasterers and custodians as well as employees working in entertainment, restaurants and attractions."

Disneyland furloughs another 1,800 employees with theme parks closed for ‘foreseeable future’

The furloughs will impact a wide range of jobs including landscapers, engineers, painters, plasterers and custodians as well as employees working in entertainment, restaurants and attractions.

www.ocregister.com

 

[TP2000]

"Disneyland plans to furlough nearly 1,800 additional employees in the wake of COVID-19 reopening guidelines from Gov. Gavin Newsom’s administration that have left California theme parks closed for the “foreseeable future.” Disney announced 1,797 furloughs of Disneyland union and non-union employees due to continuing business impacts of the COVID-19 pandemic as part of the Worker Adjustment and Retraining Notification Act, known as the WARN Act. Disney filed the WARN Act notifications on Nov. 12 with the furloughs set to start on Nov. 23 and on subsequent dates through Feb. 21"

"The furloughs will impact a wide range of jobs including landscapers, engineers, painters, plasterers and custodians as well as employees working in entertainment, restaurants and attractions."

Disneyland furloughs another 1,800 employees with theme parks closed for ‘foreseeable future’

The furloughs will impact a wide range of jobs including landscapers, engineers, painters, plasterers and custodians as well as employees working in entertainment, restaurants and attractions.

www.ocregister.com

Disneyland has already laid off thousands of CM's permanently, and now their furloughed ranks are swelling well into the thousands also.

What will be interesting is seeing how many of those furloughed CM's actually return when they are recalled next summer or fall. How many furloughed CM's after 15+ months of not working at Disneyland will have found other employment, moved out of town, or found one of the few U-hauls still available to rent to leave California entirely?

It would seem they run a huge risk here of trying to restart Disneyland in mid to late 2021 facing a giant casualty list of CM talent that is long gone and not coming back. What a mess!

 

[J4546]

yeah disney is cutting tens of thousands of peoples jobs for the moment, we will see how many they hire back. I imagine they will get a few but Im sure they will use this event to create a leaner company overall.

 

[Stevek]

yeah disney is cutting tens of thousands of peoples jobs for the moment, we will see how many they hire back. I imagine they will get a few but Im sure they will use this event to create a leaner company overall.

Probably to some extent, maybe not in the parks as much as other areas unless Disney feels they are completely over-staffed within the actual hourly CM ranks. Not anything I've ever heard being a problem...always seemed like they were continually trying to make sure they had enough people to staff the parks.

 

[jzramom]

Disneyland has already laid off thousands of CM's permanently, and now their furloughed ranks are swelling well into the thousands also.

What will be interesting is seeing how many of those furloughed CM's actually return when they are recalled next summer or fall. How many furloughed CM's after 15+ months of not working at Disneyland will have found other employment, moved out of town, or found one of the few U-hauls still available to rent to leave California entirely?

It would seem they run a huge risk here of trying to restart Disneyland in mid to late 2021 facing a giant casualty list of CM talent that is long gone and not coming back. What a mess!

Off topic but if it helps someone, I am on a couple FB groups for folks moving out of CA. They are finding it cheaper to fly out of state to rent a U-haul and drive it back to CA for their move.

 

[MoonRakerSCM]

Yup, up to four times as expensive due to demand. Parents have noted this in their musings about their future move to Prescott.

 

[TP2000]

Off topic but if it helps someone, I am on a couple FB groups for folks moving out of CA. They are finding it cheaper to fly out of state to rent a U-haul and drive it back to CA for their move.

It's impossible to get a U-Haul in California now, they are all gone. The full-service moving companies like Mayflower and Bekins have had to jack up their prices for California because all the trucks are only going one way; out!

I heard on the news yesterday of a family in SoCal who was desperate to move away from the California Nightmare and the dad found a job in Tennessee.

But they had to fly out to Dallas to rent a U-Haul truck to drive back to SoCal to load up and then drive back out to Tennessee. So they were going to do it. They had no choice if they wanted out.

 

[Lilofan]

It's impossible to get a U-Haul in California now, they are all gone. The full-service moving companies like Mayflower and Bekins have had to jack up their prices for California because all the trucks are only going one way; out!

I heard on the news yesterday of a family in SoCal who was desperate to move away from the California Nightmare and the dad found a job in Tennessee.

But they had to fly out to Dallas to rent a U-Haul truck to drive back to SoCal to load up and then drive back out to Tennessee. So they were going to do it. They had no choice if they wanted out.

A number are moving to TX. Some many are moving to Austin that the TX locals are calling them Austinfornians.

 

[drizgirl]

Disneyland has already laid off thousands of CM's permanently, and now their furloughed ranks are swelling well into the thousands also.

What will be interesting is seeing how many of those furloughed CM's actually return when they are recalled next summer or fall. How many furloughed CM's after 15+ months of not working at Disneyland will have found other employment, moved out of town, or found one of the few U-hauls still available to rent to leave California entirely?

It would seem they run a huge risk here of trying to restart Disneyland in mid to late 2021 facing a giant casualty list of CM talent that is long gone and not coming back. What a mess!

You don't think they just hit "pause" on their lives and are sitting around hungry, letting their bills pile up, just so they can come back and start making magic for random strangers?

 

[Old Mouseketeer]

Disneyland has already laid off thousands of CM's permanently, and now their furloughed ranks are swelling well into the thousands also.

What will be interesting is seeing how many of those furloughed CM's actually return when they are recalled next summer or fall. How many furloughed CM's after 15+ months of not working at Disneyland will have found other employment, moved out of town, or found one of the few U-hauls still available to rent to leave California entirely?

It would seem they run a huge risk here of trying to restart Disneyland in mid to late 2021 facing a giant casualty list of CM talent that is long gone and not coming back. What a mess!

Between union contracts and state and federal labor law, language is important. A layoff is not really permanent because the worker is not separated from the company and they have recall rights. My understanding from friends going through this is that Disney has extended the recall rights from one year to two years. This means that Disney can't hire people off the street to fill positions of laid-off workers until they have been turned down by every worker eligible for recall.

Furlough is different. I have talked about this with a friend who is furloughed. He still has his ID and Main Gate Pass. He has access to the company intranet for employee services and company email. He was able to complete the course he was enrolled in through the Disney education program. Possibly most importantly, Disney continues to pay 100% of his healthcare. I have not heard if he might be affected by the additional layoff just announced.

As to the risk for Disney in reopening, you raise a good question. The longer the parks are closed, the more attrition Disney can expect from laid-off and furloughed workers. The saving grace is that they will have some warning as they start recalling workers in advance of the reopening, as well as reopening at reduced capacity. Another variable is what impact the vaccination program will have. By the time Disneyland reopens next spring or summer, will there be a fuller availability of dining options than when the other resorts around the world have opened? What about entertainment offerings?

The only thing I am sure of is that it will get worse before it gets better.