On layoffs, very bad attendance, and Iger's legacy being one of disgrace

Mrtko

Member
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Shanghai is losing money on its operations too.
What does "Net Positive" mean? Didn't they say variable revenue exceeded variable cost, so the admissions pay the salaries, but the fixed costs still keep it in the negative? I think I got that right so how is it a net positive?
 

hopemax

Well-Known Member
Btw.... where's Bob Iger?
Sir not appearing in this conference call.

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drew81

Well-Known Member
Question of the day from Chase:

“So WDW demand isn’t as strong as you thought it would be?”

@realBobChapek:

“Yes, we’ve royally screwed over Annual Passholders by blocking them from parks with the reservation system, all the while letting resort/day ticket guests have full access. We’re still figuring out the AP refund algorithm too. Day ticket guests aren’t actually knocking down the door. Even so, we can’t honor or give Annual Passholders what they actually paid for. We’re hoping that extra month will shut them up.”
 

gwhb75

Well-Known Member
What does "Net Positive" mean? Didn't they say variable revenue exceeded variable cost, so the admissions pay the salaries, but the fixed costs still keep it in the negative? I think I got that right so how is it a net positive?

That's what Net Positive means as per the definition they are using. If they can cover at least the variable costs then they are better off staying open than being closed. EG. If fixed costs are $100, and I can sell a ticket for $120, with variable costs of $110, I am covering my variable costs and contributing $10 towards fixed cost. Not a way to run a business long term obviously, but in the short term, given the current world situation, it's the best of the possible worst-case scenarios.

PS - sorry if I'm insulting your intelligence with the simple example. Not my intention at all, but I don't know your level of financial literacy
 

tirian

Well-Known Member
But that doesn't really address the question of how they could have protected their park business from this. If they had said they were just going to take the cash and sit on it, would that have been an acceptable answer? Even amidst the complaints that they don't invest enough in their parks?

I don't think the fan community is ready to adopt a position that money spent on the parks is a waste.
Then please share your expert opinion here.
 

tirian

Well-Known Member
Its so easy to criticize TWDC after the fact. Before the virus, TWDC was making money hand over fist. I was at EPCOT F&W in November (who knows the virus was already in the US) and it was so MOBBED I could not get near a food booth to buy my $7 sample.

In the past I was critical about WDW raising prices on everything, but folks (including me) still showed up and spent our cash.

If before the virus, if Iger went into a stockholders meeting and announced, “We are not going to grow our business, instead we are going to stock pile all our cash in case we are hit by a 100 year event like, I don’t know, the Spanish flu.”

He would have been laughed out of the place.....
I agree with you 100%. That’s why nobody expected anything like this despite wondering why he overpaid for Fox. Anyone who claims they foresaw this situation “in unprecedented times” is full of poop. :D

For the fan community, it’s the hindsight that stings.
 

el_super

Well-Known Member
Then please share your expert opinion here.

The burden is on you to provide what you think an adequate backup plan would have been, since you are leveling the charge against Iger that he failed to have one.

My "expert" opinion is that they are handling this crisis about as well as would be expected.
 

pheneix

Well-Known Member
Original Poster
No talk of layoffs today.

Disney's furlough action taken earlier in the year was cited as a cost savings maneuver that saved their quarter. Per conference call "most cast members furloughed" will return eventually.

Yeah. That same company that totally killed spending on the theme parks. Totally hiring everyone back.

Still, I guess I am happy to say that this time the scary thread title above hasn't played out yet?

The long term challenges at Disney are present and they will be present tomorrow.

They're not talking about the China parks at all today. There is a reason.
 

mwf5555

Active Member
I agree with you 100%. That’s why nobody expected anything like this despite wondering why he overpaid for Fox. Anyone who claims they foresaw this situation “in unprecedented times” is full of poop. :D

For the fan community, it’s the hindsight that stings.
Chapek preaching truth rn, as we have discussed.

WDW's demand is quite muted. But they'll be in good shape when consumer confidence returns.

Also uh, um, and eh.....
So...does all this mean no layoffs for awhile since the bottom line is favorable?
 

DreamfinderGuy

Well-Known Member
Kinda disappointing that we got little Parks mention, and nothing for EPCOT. Actually, that's pretty concerning considering they highlighted it as a massive company undertaking before and have since mentioned it's been modified, sooo.... 😬
 

Brer Oswald

Well-Known Member
Kinda disappointing that we got little Parks mention, and nothing for EPCOT. Actually, that's pretty concerning considering they highlighted it as a massive company undertaking before and have since mentioned it's been modified, sooo.... 😬
Splash funds have to come from somewhere.
 

el_super

Well-Known Member
They said it was open. Nothing else.

She mentioned they were net positive as well... I thought?

No talk of layoffs today.

I mentioned this in another thread (I think?) but there are a lot of ways to cut labor costs without layoffs, including reducing hours for those who are not contractually guaranteed hours, and not replacing full time people who leave (retirement or otherwise). That combined with the elimination of the intern programs, the college program and the international programs would represent a significant chunk of WDW's front line labor.

Additionally... Disneyland's front line CMs are still mostly on furlough. They won't seriously consider layoffs at DLR until the park is reopened.
 
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