WDW IT Layoffs 1/30/2015

[71jason]

Had a friend laid off after 11 years. The idea all these employees were hired solely for MM+ is erroneous message board speculation--so, of course, everyone takes it as gospel.

 

[NMBC1993]

That is just so all kinds of wrong...

But isn't that the definition of today's U.S. Government in general?

 

[Disneyhead'71]

So the U.S. government would tax Disney big-time if it brought money it earned in China back to the U.S. to possibly invest in new, job-creating ventures?

That is just so all kinds of wrong...

Why? It will go towards stock buy backs and and executive bonuses. Oddly enough, corporate earnings are taxable income.

 

[Sl8500]

They outsourced their IT to India based HCL. Bad decision..... The people they hire typically have no understanding of the business they are supporting. That is a key element to a good IT professional.

 

[yedliW]

My son-in- law says, "revenge is 10 fold".

Nothing like burning bridges on your way out..

 

[seascape]

The reason not to tax foreign income is that once they bring it back it will go to pay, bonuses and dividends. Those arr all taxable. But if they use it for expansion it will create jobs. On the other hand keeping the money in china creates jobs in china and outsources American jobs. That is what Universal has announced they are doing. I hope Disney doesn't but as a stockholder I expect them to. Washington has to fix our tax code. Companies should pay their fair taxes on US income but allow them to make money abroad and bring it home with no extra taxes. Just ask the people here who go to Europe and ask them about being refunded taxes on items they bring back hope. Europe refunds the VAT tax when taking items back to the US. They encourage tourism and they have similar tax policies for their companies. Make money abroad bring it home and help create local jobs rather than leave tbe money in other countries.

 

[Texas84]

Has anyone actually looked at Disney IT postings? Nothing but purple squirrels.

 

[Magenta Panther]

Why? It will go towards stock buy backs and and executive bonuses. Oddly enough, corporate earnings is taxable income.

Um, maybe, but the government taxes EVERYONE too much IMO. I'd still rather Disney spend that money than the Feds. They'd just spend it on environmentally-friendly wind farms that kill thousands of birds a year, or something.

 

[Goofyernmost]

Had a friend laid off after 11 years. The idea all these employees were hired solely for MM+ is erroneous message board speculation--so, of course, everyone takes it as gospel.

OR maybe your friend was unable to transition to the new systems and had become a burden instead of an asset. Happens often when someone has a long tenure with companies. They feel secure and do not put any effort in keeping up. It isn't always the big evil corporation. Sometimes we are our own worst enemy. I don't know if this is the case with this person and I don't know if it isn't, but, your statement is just as broad and misleading as any of the others listed here.

 

[Disneyhead'71]

Um, maybe, but the government taxes EVERYONE too much IMO. I'd still rather Disney spend that money than the Feds. They'd just spend it on environmentally-friendly wind farms that kill thousands of birds a year, or something.

How much DO you think we should be taxed? Comparing our tax level with other industrialized first world countries, only Japan pays less tax and their economy has been in the crapper for 20 years. And comparing our current level of taxation with our own history, we haven't paid less taxes since the 1930's.

 

[flynnibus]

Let me see if I understand. Disney hires a large number of employees to implement a huge new project, years in the making

You assume this is Parks&Resorts IT only... Disney is a conglomerate and there is IT that spans both P&R and the other divisions

 

[RSoxNo1]

This must mean that the app is flawless. That's interesting because I haven't seen an update since my trip and it was god awful then.

Apologies to those people that lost their jobs.

 

[toolsnspools]

How much DO you think we should be taxed? Comparing our tax level with other industrialized first world countries, only Japan pays less tax and their economy has been in the crapper for 20 years. And comparing our current level of taxation with our own history, we haven't paid less taxes since the 1930's.

Data to back that up? I have stats that state otherwise.

http://taxfoundation.org/article/corporate-income-tax-rates-around-world-2014

 

[TP2000]

Sad news. And yet, somehow not surprising now that MyMagic+ is pretty much up and running, whatever that may mean.

Also not surprising that TDO would want to outsource as many IT people as possible to India, where they can pay the same person pennies on the dollar, not worry about expensive Company benefits, and never have to deal with the expense of letting the Indian IT person and their various friends and family into the parks for free a few dozen times per year.

 

[TimothyG]

Let me see if I understand. Disney hires a large number of employees to implement a huge new project, years in the making. After most of the construction is complete they notify the employees the need for their services has ended. They are given a 3+ month notice to begin a search for suitable employment either within or outside the company. Yet Disney is evil and mean-spirited for daring to eliminate a position that is no longer needed. This would be like Disney hiring all the carpenters to rebuild FL onto their payroll then laying them off after the job was done.

Perhaps the would have been better off outsourcing from day one but some might complain about that too.

But this isn't the same thing. These people weren't 1099 contractors, they were full time W2 employees. The assumption was that they would have a permanent, full time position because they were hired in that capacity. Normally, I think Disney gets a lot of unwarranted criticism, but this is absolutely terrible.

 

[TimothyG]

Um, maybe, but the government taxes EVERYONE too much IMO.

Taxes are a drop in the bucket compared to how much cheaper software developers are in India. In the US, the average software developer makes $90k / year on average. In India, it's $5k USD / year. That's the reason why Disney did this. It has nothing to do with taxes.

 

[Hakunamatata]

But this isn't the same thing. These people weren't 1099 contractors, they were full time W2 employees. The assumption was that they would have a permanent, full time position because they were hired in that capacity. Normally, I think Disney gets a lot of unwarranted criticism, but this is absolutely terrible.

Anyone who works under the assumption that they have a permanent job is foolish especially in this economy.

 

[RSoxNo1]

Anyone who works under the assumption that they have a permanent job is foolish especially in this economy.

Unless you're an accountant.

 

[Mad Stitch]

Has anyone actually looked at Disney IT postings? Nothing but purple squirrels.

I have, and you are correct. Because if it I never had an interest in working for Disney, but I have looked for jobs elsewhere in Orlando. With these locals now looking for jobs the competition just increased.

 

[Creathir]

Taxes are a drop in the bucket compared to how much cheaper software developers are in India. In the US, the average software developer makes $90k / year on average. In India, it's $5k USD / year. That's the reason why Disney did this. It has nothing to do with taxes.

Not quite, India developers are closer to 23-30k.

Another thing to factor in here is the insane policy on healthcare in the US. That 90k developer really is running around 135-145 or even more when you factor in healthcare and 401k matching.

As a software engineer, I'm saddened by this as it means Disney is falling pray to the assumption that engineers overseas are as good as those here in the US. Trust me, from experience, they are not. Folks that are as good come over here to earn more money.

Our company did this a few years ago, outsourced the entire IT folks (besides app dev, they kept some of us) and it has been a complete disaster. Companies try this, it can, will, and does blow up in their faces, and after 5 years they return to US based workers.

Disney will be back, just sucks for those affected in the meantime.