Layoffs at Walt Disney World and other divisions of WDC

[Tim_4]

Speaking from a business perspective, this does not mean that disney is going to cut 10% of its CM what it means is that they are planning to reduce operating costs by cutting 10% of costs from labour. What this means is that disney will look at and consider all of its options, what disney will likely look at most are A: seasonal employees at parks and extended hours at parks due to the increase of number of CM's and the amount of extra hours that will be operated during the seasons that require more CM's. B: Disney will cut labor costs at sections that are making minimal profits are not making profit for the company.

Incorrect.

The cuts at TWDC are NOT operational. The cuts are almost entirely Selling, General, and Administrative (SG&A) costs. Finance, Accounting, IT, Marketing, Sales, PR, Management, Support, etc.

An ESPN source tells us that all departments "are under review." As The Big Lead is reporting, layoffs today (and more tomorrow) are concentrated in sales and technology.

 

[Rodan75]

It makes sense for ESPN to be under close inspection, it shows that the company is serious on cost reduction. ESPN has been the Golden Goose for so long, it probably has more to cut. And yes it sucks for those impacted and hopefully they can find new positions quickly.

 

[n2hifi]

Since full time employment will now be considered anything over 30 hours/week, businesses will be incentivised to place as many employees below full time status to compensate for increased health insurance costs.
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My wife's company (which happens to be a subsidiary of Comcast) is doing the same with part time workers. They have all been slashed to under 30 hours a week. For them though it increases workforce because the shifts still need to be covered so there are more people working fewer hours.

 

[Nubs70]

My wife's company (which happens to be a subsidiary of Comcast) is doing the same with part time workers. They have all been slashed to under 30 hours a week. For them though it increases workforce because the shifts still need to be covered so there are more people working fewer hours.

Hopefully this trend is only isolated to a few instances. However, if these reduction in hours/pay differentials are economy wide, this will significantly reduce disposable income available for vacations. It will be interesting to see the base occupancy rates and return rates at the value and moderate resorts over the coming few years.