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

MisterPenguin

Rumormonger
Premium Member
False. Iger is quite clearly the puppet master. Up until now, Iger was literally (not metaphorically) holding Chapek by puppet strings. Sometime between the last call and now, Chapek found a pair of scissors, cut those strings, and overthrew Iger.

Reportedly, he sang the famous song from Pinocchio as he was doing it. Which surprises me, considering that’s an IP from Walt’s era.

Um... you just posted that Iger is the puppet master and that Chapek isn't controlled by the puppet master...
 

TheDisneyDaysOfOurLives

Well-Known Member
In the Parks
Yes
100% stand by every word. The timing of it all around earnings brings it the highest level of scrutiny, and that’s fine.

Corporate earnings reports are getting about as credible as TEA attendance estimates. But they are the only agreed upon starting points to even talk about a firms financials. So you have today where Disney pulled every accounting trick in the book and ppl act like it’s a giant reset button. Lol, it’s not.

I thought it was illegal to falsify the corporate earnings reports/10-K?
 

Mouse Trap

Well-Known Member
I thought it was illegal to falsify the corporate earnings reports/10-K?

Within 2 minutes of the earnings being released many users were claiming it was an accounting trick. I highly doubt anyone on here has the capacity to read and digest the mechanics of an earnings report in that amount of time.

Surely Disney used a few perfectly legal tactics to move money and losses, but nothing they did was illegal in order to puff up their financial situation to appear exponentially better than what many are trying to allude to.

The same doom and gloom insiders were preaching dooms day was FINALLY upon us and got caught, again. This is their time to do damage control.
 

DDLand

Well-Known Member
My initial reaction is how mixed the results were. There were stunning highs and stunning lows. We care about Disney Parks, Experiences, and Products (DPEP). DPEP includes the theme parks, cruise ships, and licensing (think toys and clothes) businesses. DPEP was clobbered. It was catastrophic. DPEP made revenues of $26 Billion in 2019. It’s massive. It was The Walt Disney Company’s #1 revenue creating division in 2019. While margins and profitability were still lower than Media Networks, the future looked bright for DPEP. One investor even referred to Disney Parks as “Disney’s Rock of Gibraltar:”

Now this massive business has been forced to a halt. 85% YoY reduction in quarterly revenue. $3 Billion in OI losses thanks to COVID. It’s crazy. This is pretty unprecedented. To see a business so massive shutdown so rapidly is stunning. Guys, this quarter’s losses are just mind blowing. DPEP was obliterated. Could any of us imagined this one year ago? Could any of us pictured an 85% YoY collapse? It’s insanity. We may be a little more used to insanity than we were a year ago. But everyone, this was incredible.

Will there be layoffs? Will there be cuts? What happens next?

We need not fear for the company’s immediate future. Disney has accumulated enough cash to survive in perpetuity. But let’s not kid ourselves. Chapek’s #1 priority right now is returning DPEP to profitability. Chapek and Co. have a license to lose money at Direct to Consumer. The same leeway is not granted for DPEP. It HAS to make money- even if only a little bit.

What does that look like in practice? Expect desperate actions and deep cuts to headcount. Layoffs WILL come. It is was remarkably bold to reopen Walt Disney World. The idea there was a bunch of pent-up demand for Orlando was ludicrous. Whether you believe it’s rationale or not, people are scared or not interested in wearing a mask. That’s a reality that Chapek seemed blissfully unaware of. COVID will keep having regional flare ups for the next few months (maybe longer). Welcome to the “new normal.” Projects WILL be reduced in scope or cancelled. The fact that Chapek’s team refused to even mention occupancy is telling. Do you think Chapek wouldn’t be crowing about occupancy if it was strong? The CFO’s dodge was absurd.

Something else that will suffer... Quality. I wrote this in February as I decried the state of the parks:
Let’s chew on this hypothetical. What will Disney do when people stop coming? We all know that they will cut operating hours and maintenance. But the reason people aren’t coming is exactly because they’re getting a bad value. So the cycle will repeat. The current management is ill equipped to respond to any problem.
I could not have foreseen that the crises that Disney would face would come so soon and so destructively. It also would be FAR outside Disney’s control. But it pays to remember... Chapek and his management team are horrific. They don’t understand or like theme parks. They have spent the last two decades butchering Walt Disney World. Walt Disney World is on dangerous footing. Quality and value are the first things that Chapek will happily slash. Guys, Walt Disney World is in danger. While low crowds may feel good right now, expect deep and lasting cuts. The Cast Member Corps will be gutted. Chapek will be relentless.

But what about the other businesses? Solid results all around. Media Networks proved more resilient than I was expecting. People were willing to pay top dollar for ESPN even as content slowed to a trickle. The studios will continue to contract. That could be pretty messy for a while. My inclination is Mulan for $30 won’t fair too well... But I’m open to being proven wrong. Cutting out the theatres means Disney could have pretty much half the gross and still make the same amount of money. If it works it would be liberating. COVID has made everything unpredictable. Mulan will be an exciting experiment! Expect Disney to push it hard.

So much unpredictability! Let’s keep our eyes on the parks. If they do anything to harm our Parks, let’s let them know!
 
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MerlinTheGoat

Well-Known Member
There’s sarcasm...font?! :oops:
220px-Sans_undertale.jpg
 

MisterPenguin

Rumormonger
Premium Member
There’s sarcasm...font?! :oops:

Lots of fonts (though a lot less than there used to be)...

 

TheDisneyDaysOfOurLives

Well-Known Member
In the Parks
Yes
Lots of fonts (though a lot less than there used to be)...


Man, COVID-19 is even causing cuts to WDWMagic's budget? What's next, less smiles?!
 

Brer Oswald

Well-Known Member
Lots of fonts (though a lot less than there used to be)...

Well noted!
 

the.dreamfinder

Well-Known Member
Lots of fonts (though a lot less than there used to be)...

1596589195079.jpeg
 

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