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Hundreds lose jobs as Disney World layoffs accelerate
Disney, which is Central Florida's largest employer with about 62,000 "cast members," refused to say Thursday how many jobs it has eliminated.
Jason Garcia
Sentinel Staff Writer
4:09 PM EDT, March 26, 2009
Walt Disney World has stepped up layoffs this week, as the company prepares to close out its fiscal second quarter this week.
Disney, which is Central Florida's largest employer with about 62,000 "cast members," refused to say Thursday how many jobs it has eliminated. But one person familiar with some details of the cuts said he was given an estimate of 450.
Employees said the cuts, which predominantly target salaried workers, have occurred across the resort's back-office functions, including entertainment, merchandise, finance, transportation, training, emergency management and theme-park operations. Some employees who deal directly with guests have also been let go, including park guest-service managers and managers at the Disney Vacation Club sales preview center.
"It's property-wide," said Donna-Lynne Dalton, business agent for the Teamsters Local 385 union, which represents characters, laundry workers, parking attendants and ranch hands. She noted, however, that the job cuts have not affected unionized employees.
"I was told that they are going to be walking people out through Friday," she said.
One former employee, who said he was laid off Wednesday after more than 10 years at Disney World, said he was personally familiar with about two-dozen others who lost their jobs. Another worker laid off this week said he personally knew about 20 others whose jobs were eliminated.
"We're not talking about one or two people. We're talking about 30 or 40 people in some areas," one of the laid-off employees said. Both spoke on the condition they not be identified, for fear of losing their severance pay.
Another former employee said some severance packages include one week's pay for every year with the company. That includes up to 60 days on paid administrative leave, he said, in which former employees continue to receive their benefits. He also said laid off workers can at least temporarily continue to purchase health insurance at company rates.
Disney announced in February that it would begin slashing jobs as part of a corporate restructuring in which it is combining functions between Disney World and Disneyland in Anaheim, Calif.
"We think these changes are essential to maintaining our leadership position in family tourism, and they reflect today's economic realities," Disney spokesman Mike Griffin said Thursday.
The job cuts follow voluntary buyouts offered to more than 600 executives across its domestic parks. Disney said approximately 50 people accepted the buyouts.
The layoffs and buyouts are part of deep cost cuts imposed across the Walt Disney Co., as the Burbank, Calif., media-and-entertainment giant suffers through the worst recession in decades. Company profits fell by 32 percent during the first quarter, which ended Dec. 27.
Disney's theme parks are particularly vulnerable to downturns in consumer spending. The company has attempted to keep attendance afloat with deep discounts that are eroding profit margins.
Among those who have already departed or are scheduled to leave by the end of the month: Disney Cruise Line President Tom McAlpin, top chef and restaurant planner Dieter Hannig, and veteran spokesman Bill Warren.
The company has said it is trying to target cost cuts at its theme parks so that they do not hurt guests' experience. But one laid-off employee said the back-office cuts have been so deep that it will inevitabily impact guests. .
"The support from backstage to cast members affects that guest experience," he said. "They affect the cast member, the cast member's attitude, the cast member's ability to do their job."
Disney World has been laying off workers since last month. But former employees say the cuts accelerated this week, and have been so widespread that one former employee described it as "a massacre."
The cuts could be timed to coincide with the end of the Disney Co.'s fiscal second quarter, which concludes Saturday. Disney will report its second-quarter earnings May 5.
Jason Garcia can be reached at jrgarcia@orlandosentinel.com
Copyright © 2009, Orlando Sentinel
Hundreds lose jobs as Disney World layoffs accelerate
Disney, which is Central Florida's largest employer with about 62,000 "cast members," refused to say Thursday how many jobs it has eliminated.
Jason Garcia
Sentinel Staff Writer
4:09 PM EDT, March 26, 2009
Walt Disney World has stepped up layoffs this week, as the company prepares to close out its fiscal second quarter this week.
Disney, which is Central Florida's largest employer with about 62,000 "cast members," refused to say Thursday how many jobs it has eliminated. But one person familiar with some details of the cuts said he was given an estimate of 450.
Employees said the cuts, which predominantly target salaried workers, have occurred across the resort's back-office functions, including entertainment, merchandise, finance, transportation, training, emergency management and theme-park operations. Some employees who deal directly with guests have also been let go, including park guest-service managers and managers at the Disney Vacation Club sales preview center.
"It's property-wide," said Donna-Lynne Dalton, business agent for the Teamsters Local 385 union, which represents characters, laundry workers, parking attendants and ranch hands. She noted, however, that the job cuts have not affected unionized employees.
"I was told that they are going to be walking people out through Friday," she said.
One former employee, who said he was laid off Wednesday after more than 10 years at Disney World, said he was personally familiar with about two-dozen others who lost their jobs. Another worker laid off this week said he personally knew about 20 others whose jobs were eliminated.
"We're not talking about one or two people. We're talking about 30 or 40 people in some areas," one of the laid-off employees said. Both spoke on the condition they not be identified, for fear of losing their severance pay.
Another former employee said some severance packages include one week's pay for every year with the company. That includes up to 60 days on paid administrative leave, he said, in which former employees continue to receive their benefits. He also said laid off workers can at least temporarily continue to purchase health insurance at company rates.
Disney announced in February that it would begin slashing jobs as part of a corporate restructuring in which it is combining functions between Disney World and Disneyland in Anaheim, Calif.
"We think these changes are essential to maintaining our leadership position in family tourism, and they reflect today's economic realities," Disney spokesman Mike Griffin said Thursday.
The job cuts follow voluntary buyouts offered to more than 600 executives across its domestic parks. Disney said approximately 50 people accepted the buyouts.
The layoffs and buyouts are part of deep cost cuts imposed across the Walt Disney Co., as the Burbank, Calif., media-and-entertainment giant suffers through the worst recession in decades. Company profits fell by 32 percent during the first quarter, which ended Dec. 27.
Disney's theme parks are particularly vulnerable to downturns in consumer spending. The company has attempted to keep attendance afloat with deep discounts that are eroding profit margins.
Among those who have already departed or are scheduled to leave by the end of the month: Disney Cruise Line President Tom McAlpin, top chef and restaurant planner Dieter Hannig, and veteran spokesman Bill Warren.
The company has said it is trying to target cost cuts at its theme parks so that they do not hurt guests' experience. But one laid-off employee said the back-office cuts have been so deep that it will inevitabily impact guests. .
"The support from backstage to cast members affects that guest experience," he said. "They affect the cast member, the cast member's attitude, the cast member's ability to do their job."
Disney World has been laying off workers since last month. But former employees say the cuts accelerated this week, and have been so widespread that one former employee described it as "a massacre."
The cuts could be timed to coincide with the end of the Disney Co.'s fiscal second quarter, which concludes Saturday. Disney will report its second-quarter earnings May 5.
Jason Garcia can be reached at jrgarcia@orlandosentinel.com
Copyright © 2009, Orlando Sentinel
