FYI: More Cuts Coming

[rteetz]

I'm highly suspicious that this isn't just about Shanghai. I would love to know how much of this is burying part of that $2B spent on MM+.

That is definitely part of it.

 

[rteetz]

Did you all see this today...looks like additional star wars related fireworks and show offerings to offset some of the other closures and character greetings. I think we all need to remain patient during some of these changes and see what the end result is. If that means taking some time off for some folks. So be it. To each his/her own.

https://disneyparks.disney.go.com/b...lar-announced-set-to-make-theme-park-history/

Any guesses why they announced this? On a Friday nonetheless, to take press away from the cuts.

 

[11290]

When cuts result in one parade a night (or none - in times when 2 was the norm) and close the parks earlier than the normal for the time of year, even when it is very crowded, that impacts the "guest experience".

 

[JimmyV]

When cuts dictate one parade a night (in times when 2 was the norm) and close the parks earlier than the normal for the time of year, even when it is very crowded, that impacts the "guest experience".

Careful. That type of logic is soon to be called out as being fundamentally flawed.

 

[Budshark]

The new DHS shows were budgeted for $X. Management was told to either wait (due to Shanghai delays, pending capital projects, and existing overruns) or cut enough to offset the $X. They chose to cut in order to offset $X. (No secret mouse told me any of this, but I know from past experience how theme park expenditures and capital works, and I know how Fortune 500 expenditures and capital works. Disney is not unique in that respect).

Support? I haven't seen anything that confirms that. Are you making up this timeline or can you cite to something that substantiates it. One can alway make someone else's argument "fundamentally flawed" by making up facts.

Creative quoting doesn't help. Asking for support when the original quote states I have none other than comparable experience is a bit disingenuous don't you think? A little odd to ask for support when I stated there wasn't any.

So to your point. You don't have any either. What we have is the following:

"Sources" stating there is a 20% cut in staffing.
"Sources" stating this is due to Shanghai and overruns.
A confirmed report of off schedule painter layoffs
A mix of cast member reports (less hours, more hours)
A confirmed report of an increase in DHS Star Wars events.

So neither of us (or anyone else in this thread) has evidence. I can state from my direct experience in these areas how this works. And I can paint the picture I did above regarding what it looks like based on the information available. And then I can state its an opinion based on experience, which I did.

So, do you have any facts to support your opinion?

 

[JimmyV]

So, do you have any facts to support your opinion?

Yes.

A confirmed report of off schedule painter layoffs
A mix of cast member reports (less hours, more hours)

All the fireworks in the world won't fill those voids.

 

[rteetz]

"Sources" stating there is a 20% cut in staffing.
"Sources" stating this is due to Shanghai and overruns.
A confirmed report of off schedule painter layoffs
A mix of cast member reports (less hours, more hours)
A confirmed report of an increase in DHS Star Wars events.

Disney is not going to confirm anything about this why would they? Thats bad PR. The Sentinel found the painter thing and asked disney about it. Disney avoided the question and said we are always looking for way to create a great guest experience. I take the cuts we are hearing as facts.

 

[gwynne]

Disney is not going to confirm anything about this why would they? Thats bad PR. The Sentinel found the painter thing and asked disney about it. Disney avoided the question and said we are always looking for way to create a great guest experience. I take the cuts we are hearing as facts.

Me too.
And I agree, there is no chance Disney is going to confirm they are deliberately providing a worse guest experience in the US so they can fix their China park issues.

 

[rteetz]

Me too.
And I agree, there is no chance Disney is going to confirm they are deliberately providing a worse guest experience in the US so they can fix their China park issues.

If they did it would make it look even worse.

 

[Budshark]

Yes.



All the fireworks in the world won't fill those voids.

Huh? I think you didn't follow the thread chain. My responses were specific to a statement made earlier about fireworks and cumulative cuts. Not the overall process.

 

[Budshark]

Disney is not going to confirm anything about this why would they? Thats bad PR. The Sentinel found the painter thing and asked disney about it. Disney avoided the question and said we are always looking for way to create a great guest experience. I take the cuts we are hearing as facts.

I don't doubt confirmation, nor do I doubt that there are cuts. I doubt that anyone on this board knows exactly where and what will be affected. Nor the scope or reasoning.

So in response to a very specific statement, I explained how this would work in other Fortune 500 companies I've been associated with (and for those wondering Manufacturing, IT, and Theme Park). And what it smells like, is the 20% cut (or whatever it is) was done to keep cash spend flat due to well documented issues (Shanghai, Avatar, etc) yet add in planned new features.

Why did Disney release the news about the fireworks on a Friday and now? Likely to temper down some of the press on the cuts.
But its not like Disney dreamt them up last night. The fireworks and shows were coming regardless.

 

[rteetz]

I don't doubt confirmation, nor do I doubt that there are cuts. I doubt that anyone on this board knows exactly where and what will be affected. Nor the scope or reasoning.

So in response to a very specific statement, I explained how this would work in other Fortune 500 companies I've been associated with (and for those wondering Manufacturing, IT, and Theme Park). And what it smells like, is the 20% cut (or whatever it is) was done to keep cash spend flat due to well documented issues (Shanghai, Avatar, etc) yet add in planned new features.

Why did Disney release the news about the fireworks on a Friday and now? Likely to temper down some of the press on the cuts.
But its not like Disney dreamt them up last night. The fireworks and shows were coming regardless.

The cuts I have been reporting come from credible sources I think they are true. You don't have to believe it if you don't want to.

I agree that the fireworks show was coming regardless but they needed something calm some nerves. Heck we might even see a ticket increase now too because they announced that on a Friday.

 

[JimmyV]

And what it smells like, is the 20% cut (or whatever it is) was done to keep cash spend flat due to well documented issues (Shanghai, Avatar, etc) yet add in planned new features.

How do you know that the percentile cuts are goaled toward keeping the cash spend flat as opposed to netting a reduction? I will admit that my earlier posts don't apply if the goal is a net zero. But I haven't seen that as a stated goal and I doubt it is true.

 

[Budshark]

I don't doubt confirmation, nor do I doubt that there are cuts. I doubt that anyone on this board knows exactly where and what will be affected. Nor the scope or reasoning.

The cuts I have been reporting come from credible sources I think they are true. You don't have to believe it if you don't want to.

Dude... its like twilight zone on here today.

I said I don't doubt the confirmation or the cuts. So why would you say I don't have to believe them?

I'll help clear up- but I'm sure today it'll be twisted around. I BELIEVE DISNEY IS REDUCING LABOR.

 

[lovethattink]

Auditions for the Star Wars new stage show was held months ago, November. So at least questions on where and when the show would take place are now mostly answered.

 

[Budshark]

How do you know that the percentile cuts are goaled toward keeping the cash spend flat as opposed to netting a reduction? I will admit that my earlier posts don't apply if the goal is a net zero. But I haven't seen that as a stated goal and I doubt it is true.

I think you took my earlier post out of context and now you're just looking to spar... which I don't play. So moving on.

 

[Enjoying Life]

Even Wall Street is commenting on how bad a move this is. Considering they recently announced their previous quarterly earnings report. The report wasn't good. It was great. In fact, the earnings for last quarter broke all company records. They earned more money in the last three months than any time in the company's 93 year history. The theme park division did exceptionally well with operating profits jumping by 22%. Wall Street is calling it a big mistake to raise ticket prices and cut services in the midst of record profits and soaring attendance.

From a recent financial article:
“You don't normally see a company scramble to cut costs when margins are widening, especially in a consumer-facing industry where the measures can result in a reduction in guest satisfaction.”

And:
“If guest satisfaction suffers as a result of understaffed service or shortened attraction times of availability it could make people less likely to visit Disney World.”

Remember the old Wall Street saying: Pigs get slaughtered.

http://www.msn.com/en-us/money/tops...g-costs-at-the-worst-possible-time/ar-BBpFB9H

 

[starjazz]

I'm sure they are saving quite a bit just in reduced staffing from all the closures.

Aren't a lot of the closures to make room for expansions? Do the increases in staffing attributed to those expansions offset those from the closures? I'm guessing they offset them, and then some. But just a guess.

 

[mom2rtk]

Aren't a lot of the closures to make room for expansions? Do the increases in staffing attributed to those expansions offset those from the closures? I'm guessing they offset them, and then some. But just a guess.

The expansion will be nothing but a construction project for years. Some things have been closed for months already and I don't think there's much construction even under way yet.

You don't think there needs to be some "give back" in the parks for the years so many things are under construction? Remember WDW specializes in once in a lifetime guests. Many of them will never be back to see the expansion. Disney didn't lower admission prices. They needed to be adding some things for current guests.

 

[starjazz]

Even Wall Street is commenting on how bad a move this is. Considering they recently announced their previous quarterly earnings report. The report wasn't good. It was great. In fact, the earnings for last quarter broke all company records. They earned more money in the last three months than any time in the company's 93 year history. The theme park division did exceptionally well with operating profits jumping by 22%. Wall Street is calling it a big mistake to raise ticket prices and cut services in the midst of record profits and soaring attendance.

From a recent financial article:
“You don't normally see a company scramble to cut costs when margins are widening, especially in a consumer-facing industry where the measures can result in a reduction in guest satisfaction.”

And:
“If guest satisfaction suffers as a result of understaffed service or shortened attraction times of availability it could make people less likely to visit Disney World.”

Remember the old Wall Street saying: Pigs get slaughtered.

http://www.msn.com/en-us/money/tops...g-costs-at-the-worst-possible-time/ar-BBpFB9H

You'd think that maybe they'd slow down some of the expansions like River of Lights, Norway, Star Wars Land, Toy Story Land, and Pandora since the immediate impact to guests wouldn't be there. I mean, long term they're spending a ton of money for these expansions. Short term, they're cutting back on painters. Seems odd.