Disney layoffs include DVC managers

[JimMIA]

In another sign of the times, Disney is accelerating its layoffs of personnel, including some DVC managers apparently.

According to an Orlando Sentinel story today, "Some workers who deal directly with guests have also been let go, including guest-service managers and managers in Disney Vacation Club's sales-preview center."

Disney declined to provide the number of personnel laid off.

Here's a link to the story: Disney layoffs

 

[Disneypirate85]

WOW...estimates of 450. Hope economy turns around soon, I was curious could these ppl be called back if it did? Shawn

 

[wildernessDad]

Was Jim Lewis laid off?

 

[dcamdad]

Was Jim Lewis laid off?

Wouldn't that be nice.

 

[JimMIA]

Was Jim Lewis laid off?

No, but apparently the head of Disney Cruise Line was.

 

[TagsMissy]

It's a sensitive topic.... "Hi... Just calling to see if you were laid off or not..." but unfortunate sign of the times... I am waiting to hear today if my friend who is a manager in one of the parks is OK after I find that out I'll check on my guide.

 

[AnnaS]

That is sad to read. I hope the economy turns around and everyone gets their jobs back soon.

As much as I hate when I see a 60-90 minute wait for a ride or read about it on trip reports, I think it's always a good sign. I love it when people report that it's packed (not because I want them to wait for hours) because it means that business is good not only for Disney but the economy in general. People are traveling and spending. I say keep the money going around.

 

[lisaviolet]

Wouldn't that be nice.

Wow.

 

[WALTSAGOD]

As much as I hate when I see a 60-90 minute wait for a ride or read about it on trip reports, I think it's always a good sign. I love it when people report that it's packed (not because I want them to wait for hours) because it means that business is good not only for Disney but the economy in general. People are traveling and spending. I say keep the money going around.

Good point.

 

[going/again]

That is sad to read. I hope the economy turns around and everyone gets their jobs back soon.

As much as I hate when I see a 60-90 minute wait for a ride or read about it on trip reports, I think it's always a good sign. I love it when people report that it's packed (not because I want them to wait for hours) because it means that business is good not only for Disney but the economy in general. People are traveling and spending. I say keep the money going around.

It seems to be a strange time to be laying off, nearly every report lately says how busy is is atWDW , how is having fewer CM'S going to help make it a better vacation for people

 

[nunzia]

It seems to be a strange time to be laying off, nearly every report lately says how busy is is atWDW , how is having fewer CM'S going to help make it a better vacation for people

I am guessing it is busy at WDW because of all the promotions, which mean each trip isn't bringing in the same money, and it's been reported that although people are coming, they aren't spending. So...less staffing to support more people, which means more people leave disappointed and talks about it and so the brand suffers. It's kind of that bad spiralling effect that companies just don't get when all they see is the bottom line.

 

[Hazzard101]

To throw my two cents in, Disney is not about to tell everyone that visits are down and the park is suffering, that would be bad business.

Also remember that People pay for Disney trips up to a year in advance so a lot of these people are on "OLD" money and not the money from this bad economy.

I hope they realize that the reason people come back to Disney is for the magic that only Disney can provide. If all we wanted was thrill rides and a few characters they could get a lot more value for their money elsewhere( 7days at the park $99 Universal ) if they skimp on the service there will be less reason for people to go to the parks. I am sure they know this. Right?

 

[AnnaS]

It seems to be a strange time to be laying off, nearly every report lately says how busy is is atWDW , how is having fewer CM'S going to help make it a better vacation for people

It might also be that many had their vacations booked months prior. Who knows but I just hope I keep reading that it's busy and crowded.

 

[winniedapooh]

I am guessing it is busy at WDW because of all the promotions, which mean each trip isn't bringing in the same money, and it's been reported that although people are coming, they aren't spending. So...less staffing to support more people, which means more people leave disappointed and talks about it and so the brand suffers. It's kind of that bad spiralling effect that companies just don't get when all they see is the bottom line.

I agree with this. DH & I were at the parks March 12-17. I have to say it got more busy as the week progressed, but there was hardly anyone buying. I saw a lot more people bringing in their food and snacks and a lot less people holding bags or even at the registers. We went to DTD one night and just sat and enjoyed being alone, when we went into the stores they were packed wall to wall with not one register having a line! Saw this at the parks as well. DH, who hates shopping and stores and basically glazes over at the thought, even commented on this to me.

 

[crisi]

I agree with this. DH & I were at the parks March 12-17. I have to say it got more busy as the week progressed, but there was hardly anyone buying. I saw a lot more people bringing in their food and snacks and a lot less people holding bags or even at the registers. We went to DTD one night and just sat and enjoyed being alone, when we went into the stores they were packed wall to wall with not one register having a line! Saw this at the parks as well. DH, who hates shopping and stores and basically glazes over at the thought, even commented on this to me.

Or, to put it a different way, Disney has huge fixed costs. Right now they are trying to bring enough people at a high enough rate in to cover fixed costs - lighting the park, running the rides, keeping the hotels open. Their margin tends to be in food (off the Dining Plan - there is no way the Dining Plan has much margin in it), souvenirs, extras (like BBB) and people buying very short timeframe tickets (we have a week in Orlando and have two days at Universal, a day at SeaWorld, and three at Disney - Disney hates to see their competition get business, but those three day tickets contribute a lot to covering fixed costs). Those are the things that Disney is not selling nearly as much of, meaning if you aren't necessary to keeping the joint running right now, they can't afford you.

Also, when times are good for companies there does tend to be a lot of unnecessary bloat - particularly in middle management. Some headcount increase is necessary as the business grows and changes, but in good times those headcount increases are easier to justify, and often justified for the wrong reasons (someone is empire building). There are always poor performers that aren't living up to their jobs, but would be difficult to fire individually that a recession and layoffs gives you a reason to cut. So while some cuts hurt and happen to good people you hate to get rid of - but must - some cuts are good opportunities for corrections of past hiring mistakes.

 

[JimC]

It seems to be a strange time to be laying off, nearly every report lately says how busy is is atWDW , how is having fewer CM'S going to help make it a better vacation for people

Disney has managed to mitigate the downturn somewhat by offering discounts. And those discounts severely cut into profit margins. To offset that they have to cut costs. Its all about earnings per share and the markets fixation with short term performance.

The realignment has been mostly with management and part of a consolidation of US theme park operations. DL and WDW used to have separate management teams. My understanding is that they are being combined.

 

[JimC]

...Their margin tends to be in food (off the Dining Plan - there is no way the Dining Plan has much margin in it....

They just announced that the free meal plans are back. So even more deterioration in the food offerings at the sit-down restaurants are probably on the way. So that is going to be worse.

It has been many, many years, but when I was involved in running a country club the food was low margin. The real profit was in drinks, anything that you paid to drink was shockingly profitable. I don't know if that is still true today.

 

[Deb & Bill]

My friend's son works for Disney. His best friend used to work for the DCL (he was rather high up, too), but went to work for the group that was looking at non-park resorts (maybe Ko Olina). There were only three people in his office and all three of them were offered demotions or severance. My friend's son told him to take the demotion because he could always go back up again, but if he quit, he'd never find another job like the one he had with Disney.

My friend's son was waiting to hear what was going to happen to him as well. He works in Orlando, but his main office is in California, so he might be safe.

 

[JimC]

Slightly off topic: I'm not sure anyone is truly safe in this environment. It is an economic tsunami with no discernible bottom. Each new layoff brings about further economic contraction which leads to even more layoffs. Not very comforting.

But I agree any option that keeps one employed is better then being unemployed. I read yesterday that the official unemployment of 8.1% is likely closer to 15% if you count those no longer seeking employment and those working part time who would otherwise be full time employees. That is a massive drag on the economy and in particular discretionary spending like tourism.

 

[Crystal_27]

I agree with this. DH & I were at the parks March 12-17. I have to say it got more busy as the week progressed, but there was hardly anyone buying. I saw a lot more people bringing in their food and snacks and a lot less people holding bags or even at the registers. We went to DTD one night and just sat and enjoyed being alone, when we went into the stores they were packed wall to wall with not one register having a line! Saw this at the parks as well. DH, who hates shopping and stores and basically glazes over at the thought, even commented on this to me.

Yeah, I second this! We were there March 8-14 and DH and I were amazed that all of the merchandise was marked down at least 25%. For example, we got the large Cinderella castle for DD for only $35 - it was marked down 30% and we got an additional 10% off by using our Disney Visa at World of Disney at DTD. We were there in September, 2008 and nothing was on sale! We certainly took advantage of the sales, though - we went to World of Disney three times during our trip. Anything to do our part.

It's sad, though, that people are being laid off - I wouldn't wish that on anyone.