Layoffs underway at Walt Disney World

[larryz]

I think this might give it away! Thanks to MIdway Mayhem for the photo
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I see these in the Airport, but I don't automatically assume they own the airport...

 

[ford91exploder]

I didn’t feel like going down that road, but I generally agree that they are both investing (at least now). There’s a debate on the appropriate level of investment, but that’s for another thread.

One is investing at a rate which does not even cover the maintenance deficit, the other is upgrading old attractions and building new ones.

Its left as an exercise for the reader to determine which company applies to each case

 

[IanDLBZF]

One is investing at a rate which does not even cover the maintenance deficit, the other is upgrading old attractions and building new ones.

Both are upgrading old attractions and even building new. But Universal is doing more of the later, except they're replacing most of their old attractions with new. I mean look what WDW did with Mission Space, and the new film that will be debuting in the China Pavilion, that too.

 

[Casper Gutman]

Except both are investing in their parks.

I stipulated that WDW has begun investing meaningfully in their parks - but that's a new development this year after much more than a decade of under-investment that allowed the parks to stagnate. I don't think it's fair to say Uni is replacing attractions where WDW is building new ones - WDW is tearing out GMR, for Heaven's sake, a classic ride in a park that NEEDS more rides and has more than enough room for them. Anyway, both resorts are (finally) building, and even if I have reservations about WHAT WDW is building, that's a net positive.

Here's a question for anyone who knows the answer for sure: is Uni having mass layoffs? When was the last time they did so?

 

[peter11435]

Here's a question for anyone who knows the answer for sure: is Uni having mass layoffs? When was the last time they did so?

I believe they had a round of layoffs around the same time as the last major layoffs at WDW back in 2009.

 

[GoofGoof]

Just as a point of clarity for this thread, is there any reputable source that is saying this is going to be a “mass layoff”? Steve’s original post just said planned layoffs were underway and @lentesta said it was thankfully smaller than he originally heard. Someone else posted a link to an article that said potentially 145 people laid off. It still sucks for those 145 people and their families but in the grand scheme of WDW operations it seems like a pretty small number of people. From a financial prospective even if the average person laid off was making $100K a year that’s still only a savings of about $25M a year including benefits. That hardly moves the needle when compared to billions of dollars of stock buybacks or overall theme park segment revenue.

 

[Nubs70]

Just as a point of clarity for this thread, is there any reputable source that is saying this is going to be a “mass layoff”? Steve’s original post just said planned layoffs were underway and @lentesta said it was thankfully smaller than he originally heard. Someone else posted a link to an article that said potentially 145 people laid off. It still sucks for those 145 people and their families but in the grand scheme of WDW operations it seems like a pretty small number of people. From a financial prospective even if the average person laid off was making $100K a year that’s still only a savings of about $25M a year including benefits. That hardly moves the needle when compared to billions of dollars of stock buybacks or overall theme park segment revenue.

Just a point of clarification, if your wage is 100k/yr, your cost of employment is.around.140k to 160k depending on benefit package.

 

[GoofGoof]

Just a point of clarification, if your wage is 100k/yr, your cost of employment is.around.140k to 160k depending on benefit package.

Right, I just rounded up to $25M. I have no idea what the average salary would be I just threw out a number to establish a ballpark. Maybe it’s half that or twice that, the point is this is small potatoes for TWDC overall. It won’t solve any issues with poor earnings releases. A mass layoff could probably move the needle.

 

[mikejs78]

If both companies are buying back stock and 1 still invests in the parks while the other one doesn’t then it’s hard to make the justification that the stock buy backs are the main cause of the lack of investment. It’s even more of a stretch when Comcast spends more on stock buybacks but still invests in their parks.

.
It's a bit disingenuous to say Disney isn't investing in their parks. Star Wars land.. GoTG, Tron, the Rat, Pandora, Disney Springs, the new Star Wars Hotel, Toy Story Land, the redo of Future World, etc.. That's a lot of stuff recently completed or currently in process. You may or may not like some, many, or all of these things, but to say Disney isn't investing in the parks is foolish.

 

[GoofGoof]

.
It's a bit disingenuous to say Disney isn't investing in their parks. Star Wars land.. GoTG, Tron, the Rat, Pandora, Disney Springs, the new Star Wars Hotel, Toy Story Land, the redo of Future World, etc.. That's a lot of stuff recently completed or currently in process. You may or may not like some, many, or all of these things, but to say Disney isn't investing in the parks is foolish.

Go back and re-read that series of posts. I wasn’t the one saying Disney wasn’t investing. I was saying that even if that was true it doesn’t make sense to blame a lack of investment on stock buybacks when the other guy is doing the exact same thing.

 

[Disone]

Massive layoffs? I don't want to diminish the pain of those who do get laid off, but, 145 people in the size of a company as WDW is not 'massive.' That's 0.23% of the work force.

SeaWorld, so much very smaller than WDW is laying off 350. What do you call that, "apocalyptic"?

Actually it is not 145 at WDW, it is 145 in Parks and Resorts World Wide.

Plus the article is pointing to a statement from Disney that says the layoffs are across global Disney Parks & Resorts, which has 145k employees, not just WDW.

Anyway, the big question to me is what happens to George Kalogridis, who runs WDW. If he stays, it's simply cost-cutting. If he goes, then it's part of a broader and more structural change to WDW.

So the Massive layoff is .001 percent. Ford, take note, the these cuts at WDW were NOT to the front line GEMS, so far. A article seem to indicate that they will not be front line. That said have heard from those who would know of two resort GM's, a training manager, and an Assistant Director.... out of respect I will not give their name or locations but So so sad they lost their jobs. It may "only" be .001, but when its someone you know it stings. A lot.

So sorry to hear! Know that I am on YOUR side. Despite the prevailing rhetoric around these parts, a majority of lower level leaders at WDW are not vile, wretched, or evil people. I don't know where or why they have idea. Most everyone I've encountered have nothing but love for the Company, and are fantastic people! Sadly many have to stifle that love for Disney at the hands of those above. Keep your head high!

Such a nice thing to say, and true. Well put but I would extend that to even higher levels. They are people, doing what they think is the best options and WAY more then 9 times out of ten, there is not malicious intent. Unlike many of the posts on this forum, they aren't out to get you. Of the one I have heard that lost their jobs, my heart is sadden and heavy for their families, and the impact this will have on their life. I take some comfort in the fact that the are good hard workers, with an excellent resume and I feel they will be able to recover from this. But that does mean it was deserving or will be fun.

 

[ford91exploder]

Please note that the insiders have noted that the layoffs are occurring daily so the 145 was just a single days total.

Disney may be trying to avoid a WARN notice, So they will layoff a number under the 30 day trigger every day, interestingly part time workers with less than 20 hrs wk in last 6 months are not covered by WARN.

There is so much wiggle room in the WARN act.

And I really feel bad for the CM's affected by this as the ones who actually still care about the guest will be disproportionately affected.

 

[ford91exploder]

Except both are investing in their parks.

As @ParentsOf4 notes Disney has billions of 'maintenance debt' throughout the P&R system estimates at WDW alone are on the order of 4-6 Billion dollars.

Disney will be investing when they increase CAPEX enough to cover the maintenance debt and start growing physical plant once again.

So far all they are doing is slowing the growth of maintenance debt.

Spending != Investing

 

[AEfx]

.
It's a bit disingenuous to say Disney isn't investing in their parks. Star Wars land.. GoTG, Tron, the Rat, Pandora, Disney Springs, the new Star Wars Hotel, Toy Story Land, the redo of Future World, etc.. That's a lot of stuff recently completed or currently in process. You may or may not like some, many, or all of these things, but to say Disney isn't investing in the parks is foolish.

To begin with, several things you list are not in "the parks" - Disney Springs was yet another redo of the Marketplace. The Star Wars Hotel, neat as it is - is still...a hotel. Something the vast majority of guests will likely never actually step foot in, unless we are lucky enough for them to have a restaurant the serfs can visit who are lucky enough to get six-month out reservations.

That said, I think you are taking what folks are saying a bit too literally. Its that they haven't been making significant investment commensurate with the massive profits and typical capital investments. By the time SWL opens, we will have gone over a dozen years since the last E-ticket built outside of AK. Pandora has the first E-ticket in a decade even there.

I think most agree that things are definitely heading in the right direction - but an awful lot of it is "catch up" to make up for years of neglect on this front.

 

[Disone]

Please note that the insiders have noted that the layoffs are occurring daily so the 145 was just a single days total.

Disney may be trying to avoid a WARN notice, So they will layoff a number under the 30 day trigger every day, interestingly part time workers with less than 20 hrs wk in last 6 months are not covered by WARN.

There is so much wiggle room in the WARN act.

And I really feel bad for the CM's affected by this as the ones who actually still care about the guest will be disproportionately affected.

Ford! The article is very clear it is 145 people worldwide total. Not daily. There is no talk of daily. There is no mention of they're going to do this daily, or if so until what date for a grand total of how many.

I give up on you Ford, I used to think you were just a little overly negative but still adding value to this forum. Now I realize you're just a troll.

 

[ford91exploder]

Ford! The article is very clear it is 145 people worldwide total. Not daily. There is no talk of daily. There is no mention of they're going to do this daily, or if so until what date for a grand total of how many.

I give up on you Ford, I used to think you were just a little overly negative but still adding value to this forum. Now I realize you're just a troll.

I guess you missed the part where @lentesta (who has forgotten more about Disney that most of us will ever know) noted the layoffs would continue through DECEMBER, Last I checked today is still NOVEMBER.

 

[mikejs78]

Please note that the insiders have noted that the layoffs are occurring daily so the 145 was just a single days total.

Disney may be trying to avoid a WARN notice, So they will layoff a number under the 30 day trigger every day, interestingly part time workers with less than 20 hrs wk in last 6 months are not covered by WARN.

There is so much wiggle room in the WARN act.

And I really feel bad for the CM's affected by this as the ones who actually still care about the guest will be disproportionately affected.

I have read this whole thread, looked at other sources and nowhere have I seen it said by any insiders that layoffs are occuring daily. Where in the world are you getting this fake news?

 

[Santa Raccoon 77]

I have read this whole thread, looked at other sources and nowhere have I seen it said by any insiders that layoffs are occuring daily. Where in the world are you getting this fake news?

 

[Nubs70]

I have read this whole thread, looked at other sources and nowhere have I seen it said by any insiders that layoffs are occuring daily. Where in the world are you getting this fake news?

Where the daily inference occurred was in reply to the question if a WARN notice had been issued. Federal law requires official notice of impending mass layoffs. (Mass is determined by number, employment type, % of workforce, etc). To date, there does not appear that a WARN notice has been issued.

How could WDW layoff many people and try not issue WARN notice? Layoff a few in many cycles.

Ford's comment was theoretical.

 

[Disone]

To begin with, several things you list are not in "the parks" - Disney Springs was yet another redo of the Marketplace. The Star Wars Hotel, neat as it is - is still...a hotel. Something the vast majority of guests will likely never actually step foot in, unless we are lucky enough for them to have a restaurant the serfs can visit who are lucky enough to get six-month out reservations.

That said, I think you are taking what folks are saying a bit too literally. Its that they haven't been making significant investment commensurate with the massive profits and typical capital investments. By the time SWL opens, we will have gone over a dozen years since the last E-ticket built outside of AK. Pandora has the first E-ticket in a decade even there.

I think most agree that things are definitely heading in the right direction - but an awful lot of it is "catch up" to make up for years of neglect on this front.

Disney Springs is so much more the "yet another redo of the Market place". I am guessing you have not been yet? The Market place really is pretty much the same, some cosmetic upgrades. Ditto for West Side. But Pleasure was a major overhaul to the Water Front and Town Center is 100% new expansion. It was previously parking lot.

Its a major reinvestment into the area that I think just about everyone underestimated. Myself included.

Star Wars Hotel will not be just another hotel. It certainly won't even be a traditional Hotel. Hotel probably isn't even the right word for the project. From what I'm hearing the only thing you will have that's similar to a hotel is that you will spend the night there.