Labor cost cutting measures begin at Walt Disney World as the company enters Q1

[DisAl]

yep. And the problem is there’s really not much left to cut.

Its bad enough to cut from park operations but any additional cuts from custodial, horticulture, and maintenance will be especially painful because these areas are quickly becoming noticeably problematic.

Maintenance? Who needs maintenance? Nobody will notice a little rotting wood!
This was right outside the restroom area next to the Main Street Fire Station in MK. The photo was made the first week of June 2021. I wonder if it has been repaired yet.

 

[Ayla]

It says when you book that’s not available right now, hopefully again soon. My friend just stayed at pop and had hers made everyday, looks like they’re trying to get back to normal

The company is being very strict with this. Lots of leaders left this week as they refused to get the shot and resigned as it was their deadline this week.

It says when you check in, modified housekeeping is available (if you pick that option). If all you get is towel service, then that needs to be stated.

 

[brianstl]

Cut labor costs how about cutting Bob salary by 90 percent for a start

Chapek's compensation is $33 million less than Iger's was when he was in that position.

 

[brianstl]

I'm confused. I thought Disney was trying and struggling to hire additional, necessary workers to staff the parks and resorts? And now they're cutting?

My guess is the big savings on these cuts will come on the management side. Chapek has signaled that he thinks Disney's management is bloated and in some cases over compensated across the company's divisions.

 

[brianstl]

You mean like that Disney+ thing that raked in the cash over the course of the pandemic?

I get it. Hard times in other divisions always impact the parks. Good times in other divisions don't. Like all of that Shanghai Disney stuff. Cuts at the domestic parks when costs were too high in the building phase. But no returns back to the domestic parks when the profits started rolling in.

Disney+ didn't rake in cash, it lost money. It will most likely continue lose money for the next couple of years

 

[castlecake2.0]

It says when you check in, modified housekeeping is available (if you pick that option). If all you get is towel service, then that needs to be stated.

 

[mikejs78]

I am trying to understand why people here care that it's not busy and want crowds to return.

Because when there are low crowds Disney cuts things. I don't want them to cut people's jobs or cut services.

 

[ImperfectPixie]

My guess is the big savings on these cuts will come on the management side. Chapek has signaled that he thinks Disney's management is bloated and in some cases over compensated across the company's divisions.

The laugh isn't at you...it's at the idea that Chapek thinks management is over-compensated. Unless he includes upper-level executives in this opinion, it's a freaking joke.

 

[G00fyDad]

Maintenance? Who needs maintenance? Nobody will notice a little rotting wood!
This was right outside the restroom area next to the Main Street Fire Station in MK. The photo was made the first week of June 2021. I wonder if it has been repaired yet.
View attachment 591037

Who needs to fix that? An extra thick coat of paint will cover that right up.

 

[Lilofan]

Who needs to fix that? An extra thick coat of paint will cover that right up.

For a quick fix, sad but true.

 

[Andrew C]

Who needs to fix that? An extra thick coat of paint will cover that right up.

It would be a bit weird if it is not fixed yet, considering all the other upkeep they do on the Main Street facades...

 

[G00fyDad]

It would be a bit weird if it is not fixed yet, considering all the other upkeep they do on the Main Street facades...

If that is the case then it would have been taken care of before the last time they painted. I am sure if was like that before they slapped the last coat on it.

 

[brianstl]

The laugh isn't at you...it's at the idea that Chapek thinks management is over-compensated. Unless he includes upper-level executives in this opinion, it's a freaking joke.

He has took direct shots at the contracts of highest levels of executives at Disney. He says he wants to restructure both the length and compensation structure of the contracts of top Disney executives.

 

[Andrew C]

I am sure if was like that before they slapped the last coat on it.

Are you? Ok. Anyways, who it there now? Better snap a pic! lol

 

[ImperfectPixie]

He has took direct shots at the contracts of highest levels of executives at Disney. He says he wants to restructure both the length and compensation structure of the contracts of top Disney executives.

Including CEO, hopefully.

 

[brianstl]

Including CEO, hopefully.

He is already making more than two thirds less than Iger was.

 

[nickys]

Isn't international travel opening back up? I wonder how many that could draw in.

I noticed about a week ago that availability on DVC rooms was strangely high for October but almost completely gone for just about everything in November and December.

Realistically it isn’t going to result in loads of people rushing to book to come next month. Most of the International guests who do come in the next few months will be those who have already booked (and probably rebooked at least once).

New bookings may happen for the Summer, but often people book over a year ahead. Come December they’ll be pushing 2023. It’ll take big discounts to get many families to suddenly decide to travel within a year. The situation is still changeable.

 

[sullyinMT]

Because when there are low crowds Disney cuts things. I don't want them to cut people's jobs or cut services.

It's a fine line between being adequately staffed for quality customer service and guest experience, and being bloated to the point of losing money. The fact that they had enough CM to appear bloated in merch or at Pecos Bill's indicates they believed their own bluster about unprecedented demand for October forward and were gearing up for that scenario. Hopefully they really do follow through with only hour cuts and CM don't leave for something else, allowing them to quickly ramp up when demand does materialize. I'm of the opinion that demand is there, even if guests aren't coming during this current wave.

International travel (even if minimal with testing requirements), end of year holidays, and a decline in pandemic activity nationally could cause a spike in demand that is a detriment to guest experience if they (WDW management) get to aggressive in the cutting arena. Hopefully they are treating this as a short term solution to a short term problem.

 

[brianstl]

Realistically it isn’t going to result in loads of people rushing to book to come next month. Most of the International guests who do come in the next few months will be those who have already booked (and probably rebooked at least once).

New bookings may happen for the Summer, but often people book over a year ahead. Come December they’ll be pushing 2023. It’ll take big discounts to get many families to suddenly decide to travel within a year. The situation is still changeable.

I think there was a price shock that hit travelers domestically over the summer that caused many people to decide to delay travel another year. Prices for everything were crazy for a few months. It wasn't just a DIsney thing. Rental cars, airfare and hotels across the country were charging highly inflated prices.

 

[HauntedPirate]

CEO salary is nothing. Let’s talk about total compensation for $lappie - How many stock options will he get this year? I’d look but just the thought of his bald head makes my stomach churn.