<BLOCKQUOTE><font size="-1">quote:</font><HR>
Dear Fellow Cast Members:
As you know, during the past several months The Walt Disney Company has
undertaken a wide range of strategic initiatives designed to help us
achieve our goals for reasonable long-term growth and profitability and to
ensure that our businesses retain their industry leadership and creative
strength. And as we've discussed many times over the years, a financially strong
company results in a creatively strong company.
We have been working equally hard to make sure we are operating in the
most efficient way possible by cutting our costs in almost every area. But
despite our progress, the economy has become more challenging in recent
months and we must continue to seek ways to manage our businesses even
more productively.
Our company has grown rapidly over the past two decades. But we cannot
rest on our record. We need to face up to the increasingly pressing
challenges of the softening economic environment. We must also uphold investors'
confidence in our future while maintaining our core commitment to
quality and creativity in all that we do, including our important and unique
relationship with our guests.
Therefore, we have made the difficult but necessary decision to reduce
the company's worldwide workforce by approximately 4,000 fulltime
employees. This reduction will affect business units in all of our operations, as
well as corporate staff.
While we adjust our strategies to reflect economic reality, we believe
that we must continue to provide our guests with the Disney magic they
expect. Therefore, we will manage this program so that guest service and safety
will not be impacted.
We intend to achieve the reduction to the greatest extent possible
through a voluntary separation program that will provide participating employees
with special severance incentives, extended benefits and outplacement
services. We hope that a sufficient number will choose to participate in this
voluntary plan. However, if our goal is not met through the voluntary
plan, mandatory workforce reductions with lower severance benefits will be
required.
The voluntary program will be available on a one-time basis only. In
some cases, we may not be able to accept employees who wish to participate
in the voluntary program, although every effort will be made to do so.
Obviously, a reduction of this kind imposes stress on all cast members
- those who are staying and those who are not. We will make every
reasonable effort to minimize the stress, and to complete the program within the
shortest time possible, with the goal of reaching our reduced workforce
level in July.
Those of you who will be eligible for the voluntary separation program
will receive additional information about the program within the next ten
days. You will then have three weeks to determine whether it is an
appropriate option for you.
This may be the most difficult series of decisions that the company has
to make.
[/quote]
OKW 8/00, OKW DVC 2/01
Dear Fellow Cast Members:
As you know, during the past several months The Walt Disney Company has
undertaken a wide range of strategic initiatives designed to help us
achieve our goals for reasonable long-term growth and profitability and to
ensure that our businesses retain their industry leadership and creative
strength. And as we've discussed many times over the years, a financially strong
company results in a creatively strong company.
We have been working equally hard to make sure we are operating in the
most efficient way possible by cutting our costs in almost every area. But
despite our progress, the economy has become more challenging in recent
months and we must continue to seek ways to manage our businesses even
more productively.
Our company has grown rapidly over the past two decades. But we cannot
rest on our record. We need to face up to the increasingly pressing
challenges of the softening economic environment. We must also uphold investors'
confidence in our future while maintaining our core commitment to
quality and creativity in all that we do, including our important and unique
relationship with our guests.
Therefore, we have made the difficult but necessary decision to reduce
the company's worldwide workforce by approximately 4,000 fulltime
employees. This reduction will affect business units in all of our operations, as
well as corporate staff.
While we adjust our strategies to reflect economic reality, we believe
that we must continue to provide our guests with the Disney magic they
expect. Therefore, we will manage this program so that guest service and safety
will not be impacted.
We intend to achieve the reduction to the greatest extent possible
through a voluntary separation program that will provide participating employees
with special severance incentives, extended benefits and outplacement
services. We hope that a sufficient number will choose to participate in this
voluntary plan. However, if our goal is not met through the voluntary
plan, mandatory workforce reductions with lower severance benefits will be
required.
The voluntary program will be available on a one-time basis only. In
some cases, we may not be able to accept employees who wish to participate
in the voluntary program, although every effort will be made to do so.
Obviously, a reduction of this kind imposes stress on all cast members
- those who are staying and those who are not. We will make every
reasonable effort to minimize the stress, and to complete the program within the
shortest time possible, with the goal of reaching our reduced workforce
level in July.
Those of you who will be eligible for the voluntary separation program
will receive additional information about the program within the next ten
days. You will then have three weeks to determine whether it is an
appropriate option for you.
This may be the most difficult series of decisions that the company has
to make.
[/quote]
OKW 8/00, OKW DVC 2/01
. Upset investors walk, along with their money. If you, as a Disney investor, are happy with the way the company is being run, you will keep your money in the company. If, as some seem to imply, the Disney board of Directors is a paper tiger and Eisner will do what he wants, no matter what the boards says, well, Disney shareholders should take their money elsewhere. That will certainly affect Disney's financial bottom line
