FYI: More Cuts Coming

[snowybelle]

But it isn't WDW or even the domestic parks that are doing poorly. That's like you getting laid off because someone who works in the London branch screws up.

WDW keeps telling us that domestic park attendance is up. That resort bookings are up. That makes staffing and cuts in hours particularly hard to swallow. First time guests might not know that they're missing out on a Chip 'n' Dale meet and greet, but they will remember that they had to wait a long time to check into their resort or that they couldn't find any clean tables to sit at for lunch.

The really cynical side of me thinks that the Shanghai budget actually has nothing to do with these cuts. Execs are just looking for an excuse to cut labor (the enemy of corporations), and the glossy PR that will accompany the splashy opening of Shanghai park will make the labor cuts seem justified in the eyes of the public. They're showing that 60th Anniversary special featuring the Shanghai DL preview on ABC this Sunday. It's a lot easier to tell the public, "Look, we're cutting down so we can build THIS AMAZING PARK!" than to say "We're cutting labor costs because we're cheap, and if we could we'd try to find a way to make the parks run with absolutely no cast members at all."

^^ And I hope hope hope I am wrong about it.

Look, I love Disney, and I will still go to Disney park. (2 WDW, 1 DLP, and 1 DLR trip planned this year alone!) But I wasn't born yesterday — this is how big corporations work

Edited to add: One thing that does make me feel hopeful about the future of Disney Parks is how much butt Universal is kicking, and how much healthy competition they are giving Disney. I'm hoping that eventually we will all reap the benefits of this, at both Disney and Universal parks. At least everyone is now incentivized to dream bigger, build faster, and be somewhat competitive with their pricing.

 

[buzznina]

But it isn't WDW or even the domestic parks that are doing poorly. That's like you getting laid off because someone who works in the London branch screws up.

WDW keeps telling us that domestic park attendance is up. That resort bookings are up. That makes staffing and cuts in hours particularly hard to swallow. First time guests might not know that they're missing out on a Chip 'n' Dale meet and greet, but they will remember that they had to wait a long time to check into their resort or that they couldn't find any clean tables to sit at for lunch.

Sorry to say, but it is now just called Chip meet and greet, Dale got cut.

 

[hakepb]

This really makes no sense ... Unless WDW is expecting a serious impact of the strengthening of the $ vs other currency's.

Nothing like losing hours because your company's division in China is spending too much $, even though your American customer service job cannot be moved to China.

 

[rteetz]

The really cynical side of me thinks that the Shanghai budget actually has nothing to do with these cuts. Execs are just looking for an excuse to cut labor (the enemy of corporations), and glossy PR that will accompany the splashy opening of Shanghai park will make the labor cuts seem justified in the eyes of the public. They're showing that 60th Anniversary special featuring the Shanghai DL preview on ABC this Sunday. It's a lot easier to tell the public, "Look, we're cutting down so we can build THIS AMAZING PARK!" than to say "We're cutting labor costs because we're cheap, and if we could we'd try to find a way to make the parks run with absolutely no cast members at all."

^^ And I hope hope hope I am wrong about it.

Look, I love Disney, and I will still go to Disney park. (2 WDW, 1 DLP, and 1 DLR trip planned this year alone!) But I wasn't born yesterday — this is how big corporations work

Edited to add: One thing that does make me feel hopeful about the future of Disney Parks is how much butt Universal is kicking, and how much healthy competition they are giving Disney. I'm hoping that eventually we will all reap the benefits of this, at both Disney and Universal parks. At least everyone is now incentivized to dream bigger, build faster, and be somewhat competitive with their pricing.

Shanghai is massively over busdhet and way behind schedule. This isn't just about Shanghai though. Paris problems, WDI problems, and MyMagic+ costs are all part of it.

 

[rteetz]

This really makes no sense ... Unless WDW is expecting a serious impact of the strengthening of the $ vs other currency's.

Nothing like losing hours because your company's division in China is spending too much $, even though your American customer service job cannot be moved to China.

It makes a lot of sense if you know what is going with Disneys other parks right now like China and Paris, as well as the major budget problems WDI has.

 

[soniam]

But it isn't WDW or even the domestic parks that are doing poorly. That's like you getting laid off because someone who works in the London branch screws up.

Actually, that's exactly what has happened in the big companies for which I have worked. Completely different divisions, sometimes even in different countries, can be doing poorly, but your group, which is doing well, will have cuts. So, I can understand how unreal and unfair it seems.

keeps telling us that domestic park attendance is up. That resort bookings are up. That makes staffing and cuts in hours particularly hard to swallow. First time guests might not know that they're missing out on a Chip 'n' Dale meet and greet, but they will remember that they had to wait a long time to check into their resort or that they couldn't find any clean tables to sit at for lunch.

I don't agree with the cuts, and I think they are very unfair. I also think Disney is doing it because they know or think that first time/one time guests won't notice the difference. I think the bean counters don't have much consideration for repeat guests from a revenue point of view. It's just a business thing to them; it's not personal. However, it is personal for the CMs who are affected.

 

[rteetz]

There's only so much you can disappoint people before a lot of loyal customers stop going. And who knows if new customers would be as loyal as the old ones. That point might more likely come sooner than later. I don't think any corporate management before Iger's would've thought of cutting back like has been done in recent years

Loyal customers are not what Disney cares a lot about. Disney has the ideal that for every long time customer they lose they gain at least two more new customers.

Wonder what Walt & Roy would think about all this?

Walt always went over budget. I don't know if there was a time Walt didn't. Roy being the finance guy stepped in and did have to stop things or cut things in order to pay for what Walt was doing. It's just part of the business.

I am so saddened by this. I think it's deplorable at best to penalize the front line cast members who have to deal with the public at WDW with a cheery smile every single day, for financial mishandling of a project on the other side of the world, both literally and figuratively. It really angers me to see that this is how they are repaying those who are doing the most to make our vacations magical and smooth.

Am I understanding correctly that all of these cuts are only until April, or are those only the shows and the staffing cuts are permanent?

Well when the majority of your front line is College Program these days I can't say it's unexpected.

There is no timeline on the cuts it could be till April it could be till the end of the year it could be forever it all depends on when Disney wants to stop the cuts.

But it isn't WDW or even the domestic parks that are doing poorly. That's like you getting laid off because someone who works in the London branch screws up.

WDW keeps telling us that domestic park attendance is up. That resort bookings are up. That makes staffing and cuts in hours particularly hard to swallow. First time guests might not know that they're missing out on a Chip 'n' Dale meet and greet, but they will remember that they had to wait a long time to check into their resort or that they couldn't find any clean tables to sit at for lunch.

Parks and resorts is world wide, there are no branches.

WDW is doing very well but it really always has. Domestically is the easiest place to make cuts but really there are cuts all over the Disney parks division. WDW is also part of the problem with the cost overruns of MyMagic+, then you have over budget and late Shanghai, and Paris. Not to mention Hong Kong just posted a $19 million dollar loss.

The only Disney park that is unaffected by anything is Tokyo because Disney does not own a single thing in those parks.

 

[Ravensorrow]

Iger took a measly 22.3 million bonus this year. He's hurting too, folks.

 

[hakepb]

It makes a lot of sense if you know what is going with Disneys other parks right now like China and Paris, as well as the major budget problems WDI has.

i get how the decision might fit into a poorly conceived flow chart, but it doesn't follow common sense.

It only makes common sense if WDW attendance is below expectations.

 

[Planogirl]

I know that companies cut back elsewhere when another division has trouble. But part of what Disney is (or was) all about is customer service. Will that gradually become a thing of the past? And even if the new people continue to go when will it become apparent to even them that all is not magical?

 

[rteetz]

i get how the decision might fit into a poorly conceived flow chart, but it doesn't follow common sense.

It only makes common sense if WDW attendance is below expectations.

Disney executives don't necessarily have the greatest common sense.

This really doesn't have anything to do with attendance. This is all about money going into the parks. If Disney doesn't have to do a lot to the parks yet can still pull in great attendance numbers why would they do more when they don't have to?

 

[shanethesaint88]

As much you and others (not to point the finger specifically at you @Davey Jones II) are up in arms about this (and I agree it sucks), this is exactly how most companies work. Every big company that I have worked for has laid off people either across the board or in one group, when maybe a particular area is doing poorly. My current employer has done this twice now since I started working there a little less than 3 years ago. You would be shocked at how much money they make, like Disney levels or better. However, if one division isn't doing as well as they wanted and they only make umpteenth billions instead of gazillions, cuts all around Before anyone says that I should find a better employer, they all do this in my industry and probably others too. However, I am lucky, because I make a very livable wage and could sustain unemployment for a bit if needed. The CMs don't, and it really sucks for them. I just hope that it ends soon for their sake or that they find better paying jobs.

I just think that it is most shocking and disheartening because I assume many believedo that Disney was not this type of company. They were not just concerned with the bottom line because of the legacy of the company. And maybe we were wrong about this, they just did a better job at hiding it. Idk. But I believe that is why it is so shocking. At least to me

 

[epcotty]

Loyal customers are not what Disney cares a lot about. Disney has the ideal that for every long time customer they lose they gain at least two more new customers.

I argue that a large part of the success of the Disney parks is because of loyal customers constantly coming back. If it weren't for loyal customers the parks would be nowhere near as popular as they are. For now a lot of them still do come back but that could change, especially if they feel they don't matter and the company no longer cares about them, through constant cutting of attractions/entertainment or price increases they feel are too high or not worth it. I would argue that probably a lot are close to that point already. I don't think it's possible to replace all the loyal customers with that amount of multiplication, and if the new people who do come don't come back or don't come back often then where are you in a few years time?

 

[jtowntoflorida]

There's only so much you can disappoint people before a lot of loyal customers stop going. And who knows if new customers would be as loyal as the old ones. That point might more likely come sooner than later. I don't think any corporate management before Iger's would've thought of cutting back like has been done in recent years

We visited Disney for the first time in 2011 and between then and this past October, we took 8 trips to Disney World. Every stay except one was in a deluxe and/or deluxe villa, and most stays were for a full week. After consistently feeling like we've been getting less and yet paying more on each trip, we decided to give Disney a break. None of our vacation dollars are going to Disney in 2016. I've stopped recommending Disney World to friends. It sucks because we've had so much fun as a family there. But then when we had a great time on a non-Disney vacation last summer, I realized that a large part of the fun was just being together as a family, away from the distractions of real life. It wasn't Disney magic, it was family magic. I know that sounds corny, but it's true. We have a pretty spectacular spring break planned and I'm looking forward to spending time with my family away from 60,000 other people.

 

[epcotty]

I just think that it is most shocking and disheartening because I assume many believedo that Disney was not this type of company. They were not just concerned with the bottom line because of the legacy of the company. And maybe we were wrong about this, they just did a better job at hiding it. Idk. But I believe that is why it is so shocking. At least to me

They used to be not this type of company (or if so nowhere near the degree it is now). Iger's management has completely changed the company

 

[JRennie]

This is very disappointing. At POFQ there is a CM who is an older short man and he greets people at the door. He wears these crazy ridiculous Mardi Gras hats! I'm going to miss seeing him around.

 

[AdamEfimoff]

This is very disappointing. At POFQ there is a CM who is an older short man and he greets people at the door. He wears these crazy ridiculous Mardi Gras hats! I'm going to miss seeing him around.

I might not even go this year

 

[mom2rtk]

The really cynical side of me thinks that the Shanghai budget actually has nothing to do with these cuts. Execs are just looking for an excuse to cut labor (the enemy of corporations), and the glossy PR that will accompany the splashy opening of Shanghai park will make the labor cuts seem justified in the eyes of the public. They're showing that 60th Anniversary special featuring the Shanghai DL preview on ABC this Sunday. It's a lot easier to tell the public, "Look, we're cutting down so we can build THIS AMAZING PARK!" than to say "We're cutting labor costs because we're cheap, and if we could we'd try to find a way to make the parks run with absolutely no cast members at all."

^^ And I hope hope hope I am wrong about it.

Look, I love Disney, and I will still go to Disney park. (2 WDW, 1 DLP, and 1 DLR trip planned this year alone!) But I wasn't born yesterday — this is how big corporations work

Edited to add: One thing that does make me feel hopeful about the future of Disney Parks is how much butt Universal is kicking, and how much healthy competition they are giving Disney. I'm hoping that eventually we will all reap the benefits of this, at both Disney and Universal parks. At least everyone is now incentivized to dream bigger, build faster, and be somewhat competitive with their pricing.

I *might* react that way if that AMAZING park was anywhere I had even a snowball's chance of visiting one day.

But all this has done is taken that special Sunday night off of my "to do" list. Watching it now would just tick me off too much.

 

[Tarheel girl 1975]

Actually, that's exactly what has happened in the big companies for which I have worked. Completely different divisions, sometimes even in different countries, can be doing poorly, but your group, which is doing well, will have cuts. So, I can understand how unreal and unfair it seems.



I don't agree with the cuts, and I think they are very unfair. I also think Disney is doing it because they know or think that first time/one time guests won't notice the difference. I think the bean counters don't have much consideration for repeat guests from a revenue point of view. It's just a business thing to them; it's not personal. However, it is personal for the CMs who are affected.

This must be why I'm not a highly paid CEO. I don't understand making cuts at a park that's reporting record attendance right before one of its busiest times of the year.

Of course I also don't understand catering to the new or once in a lifetime guest over trying to keep guests coming back. No other business I know operates like this. I just don't think there is a never ending supply of people with the means or desire to go to WDW, especially with the exchange rate hurting international visitors.

I just see this all as extremely short sighted.

 

[CookieandOatmeal]

I wonder if the Wishes FP+ unavailability in April is related to this. Seems like it takes a lot of staff to manage those areas properly.

I'm making my FPs tonight so should I expect zero availbility for Wishes for my April trip?