Disney Planning Cutbacks

[BWV Dreamin]

From Reuters:


Quote:
(Reuters) - Walt Disney Co executives have been meeting this week to prepare belt-tightening measures that could include job cuts, the Los Angeles Times said, citing people familiar with the discussions.

The sources told the paper that staff reductions were being contemplated companywide.

Anne Sweeney, co-chair of Disney Media Networks, asked senior staff to recommend possible cuts in case the economy deteriorates further, according to the paper.

Other divisions have also been asked to make similar evaluations, the paper said citing one executive.

Walt Disney Co could not be immediately reached for comment by Reuters.

(Reporting by Ajay Kamalakaran in Bangalore, editing by Will Waterman)

 

[disneynutz]

Unfortunately this is to be expected. What I really hate is when Disney cuts back programs, hours and events, but still charges full price.

There have been rumors of DS and AK rotating closed days for some time now.

Next year will tell the tale.

 

[tiffany123]

My sister and brother-in-law just returned from a week at WDW. She felt that the cuts were already very evident. She said there seemed to be many fewer cast members around the parks and many of the concession carts were closed even on busy weekend days. She also said it seemed her resort had less housekeeping staff than usual.

 

[granmanh603]

Here now and I agree with poster who was here recently....I noticed what they did and also No Woody roundup show at MK and there used to be a character boat that sailed every morning at AK on the river...haven't seen that on our visits there...we have been here since Oct 15. This has been a slower week in attendance so it is hard to tell , the hours have been less this week as opposed to the first week right after Columbus Day. I remember the cut backs after 9/11.
They seem to be moving along quickly on those Tree house villas tho...saw them last night.

 

[DISNEY FIX]

Well this sucks!

 

[twinklebug]

staff reductions were being contemplated companywide.

Disney has many branches to consider other than the parks and resorts. They have a ton of folk over in media alone (ESPN, Disney Channel, ABC... more I can't name)

I think the parks and hours are reasonably safe for now. My bet is Disney's aiming to cut the higher paid salary level jobs over the low paid park CM jobs anyway (ask a CP'er how much they make some day). Disney will probably mimic what other companies are doing ... reduce IT by 1/2 and expect three time the work out of the remaining folk.... oh... and because the staff is then cut they can take from HR then too right? ... and legal? ... and now there's more room in buildings so we can consolidate...

 

[ILuvCrush]

When I was there 2 weeks ago, I took the KTTK and we were chatting about this with our guide. He said that the seasonal/hourly people will probably be the ones cut if needed. He said the worst he's weathered with layoffs was the major decrease in attendace after 9/11. Even then, basically the full timers lost their (perpetual) OT and the hourly/seasonal folks lost some days.
It was only cut back for a couple weeks, then it started to increase again.


Hopefully the cutbacks won't hurt the CMs too much...in many cases whole families work at the parks/resorts!!

 

[SunnieRN]

Is attendance actually falling at this point? Or is this a good excuse to trim the fat "in case"?
Trip reports over October reported record crowds for the season, longer waits for rides and crowded restaurants.
Guess only disney knows for sure.

 

[disneynutz]

The problem with events like our current economic mess is the companies will use it as an excuse to improve their bottom line.

In the case of WDW, the savings will be made by trimming here and trimming there. Little things that we will accept because we know that times are tough.

 

[PamOKW]

While there's no doubt that the parks may be effected this article quotes the woman who runs the networks. Ad revenues are down dramatically and are having an impact in the media -- Disney's television and cable networks and publishing ventures are what are being morespecifically referenced in this article.

 

[Starr W.]

While there's no doubt that the parks may be effected this article quotes the woman who runs the networks. Ad revenues are down dramatically and are having an impact in the media -- Disney's television and cable networks and publishing ventures are what are being morespecifically referenced in this article.

I saw the headline yesterday from the LA Times, I also figured it was from the media side of things.

Now if it was from the Orlando paper, I probably would have read it, since it would pertain to WDW.

 

[dallastxcpa]

I am okay with cut backs such as carts being closed as long as it doesn't affect the cleanliness or maintenance at the parks and resorts.

 

[jekjones1558]

I am disappointed that Fantasmic will only be twice a week, at least in January. Bookings must be down or there wouldn't be such a great AP rate offer ($49 value, $89 moderate). I wouldn't be surprised to see a hotel close for a while, like the closing of POFQ after 9/11.

 

[jaurban]

I thought the Woody show was part of YOAMD and was ending for that reason anyway. Also, not aware they had the character boat at AK for a very long time.

 

[Deb & Bill]

Well, they could save a bundle by doing away with ME. Free dining still fills the rooms (but they could modify the program a bunch), but free transportation from the airport isn't going to make or break a vacation.

 

[DebbieB]

Well, they could save a bundle by doing away with ME. Free dining still fills the rooms (but they could modify the program a bunch), but free transportation from the airport isn't going to make or break a vacation.

I think they want to discourage renting a car, which makes it more difficult to go offsite. It's also an incentive to stay onsite vs an offsite hotel. I think it does make a difference to a family on a tight budget.

 

[Disneypirate85]

I think they want to discourage renting a car, which makes it more difficult to go offsite. It's also an incentive to stay onsite vs an offsite hotel. I think it does make a difference to a family on a tight budget.

I would agree 100% with you, Disney really wants to keep there guests on site. Travel off site, just going to Mcdonalds, is lost revenue.

 

[khomer504]

I think they want to discourage renting a car, which makes it more difficult to go offsite. It's also an incentive to stay onsite vs an offsite hotel. I think it does make a difference to a family on a tight budget.

I totally agree with this. ME makes a difference for us not just finacially but for convenience. For our money, it's totally worthwhile to stay onsite and have the luxury of landing in Orlando and never even having to think about our luggage til it meets us at the resort. Now that's a fantastic way to start a vacation!

 

[DisDaydreamer]

Is attendance actually falling at this point? Or is this a good excuse to trim the fat "in case"?
Trip reports over October reported record crowds for the season, longer waits for rides and crowded restaurants.
Guess only disney knows for sure.

At this point, I don't think the attendance is so much a problem as the cost of doing business... especially when it comes to the cost of energy. There are many airlines with plenty of passengers and transport companies with plenty of freight, but their costs are almost forcing them into bankruptcy. I imagine Disney is very susceptible to energy costs too.

 

[JimC]

This article from Business Week will offer some perspective.

If Disney cuts in theme parks it will be driven by attendance and hotel bookings. International travel has helped mitigate the fall in domestic travel but next year could be tough. See this Orlando Sentinel article.