More WDI Gloom

[larworth]

Another from Mr. Hill

www.orlandoweekly.com/news/eyedrive/

Just makes you want to cry doesn't it.

 

[YoHo]

YEah, and it makes me want to Cry everytime I had to watch my friends being Walked out the door by security with there belongings hastely thrown into cardboard boxes.

I admit the comments about that staff meeting were disappointing, but I really can't tolerate any more incredulousness towards Disney Layoffs. Its nice to know that everyone else here on the boards has a secure Job. But as someone who Had 90% of his coworkers cut and himself only has a job for the next 12 or so months, I just can't give a poop about Disney's layoffs anymore. Welcome to the Real World!



(Sorry, Larworth, didn't mean to be nasty, Its just depressing is all.)

 

[wdwguide]

It makes me sick is what this does. Hopefully they'll rehire most of these people once the Eisner/Pressler depression has passed.

 

[DVC-Landbaron]

How sad.

 

[OnWithTheShow]

Its funny that you attribute the current economic situation to two men, Eisner and Pressler.
Considering most companies are doing the same thing with their work force I dont understand your complaints that this is all because of Walt Disney Company senior management.

Companies job cuts:
Visteon Corp (Auto Parts) - 2000 jobs
Bethlehem Steel - 440 jobs
Northwest Airlines - 1500 jobs
Cypress Semiconducter - 650 jobs
Iomega Corp - 1100 jobs
DaimlerChrysler - 600 jobs
Gateway - undisclosed
American Express - 5000 jobs
Safeco - 1200 jobs
Albertsons - undisclosed (closing over 100 stores)
Bausch and Lomb- 800 jobs
I could go on all day but i wont

 

[YoHo]

But I will go on since you just listed small potatos.

Nortel
30,000
Motorola
30,000
3Com
5000 (I think)


That's just off the top of my head without any news reports in front of me. And no, I didn't put too many zeros, that's 65 THOUSAND Jobs between 3 companies.

Disney's getting off lucky.

 

[ww52]

YoHo and OnWithTheShow -
Thanks for putting this in its proper perspective. There are hundreds of thousands of families who have been affected by layoffs who don't care at all about the topics we get so worked up about from time to time - they have no vacation plans in the near future until their own job situations get clarified, so they really can't care if DCA is a failure or not, or if IOA is or isn't better than recent Disney parks.

Not that the discussions are inappropriate - I just think I needed to be reminded of that.

 

[DVC-Landbaron]

Its funny that you attribute the current economic situation to two men, Eisner and Pressler. Considering most companies are doing the same thing with their work force I don't understand your complaints that this is all because of Walt Disney Company senior management.

Let me see if I can answer this. On the face of it you are quite correct. This is certainly a sign of the times. And Disney does have a fiduciary responsibility to increase shareholder value. Sometimes cuts just have to made!! And from a superficial look I concur with yours and YoHo's assessment that basically says: "That's the way the Mickey shaped cookie crumbles. It's tough all over".

That is until you see where these cuts are made and what this means to the long term future of the corporation and more importantly as an indicator of what the current management philosophy really is. So let's dive in a little deeper than just a superficial assessment.

From the Hill Article:

Of course, a significant factor in WDI's prolonged depression is the type of attractions they're currently being asked to ride herd on. When you're capable of turning out masterful, amazing things like "Dragon's Tower" -- the onetime centerpiece attraction for a long-postponed addition to the floundering Animal Kingdom -- but instead are being made to re-theme off-the-shelf amusement park rides such as "Aladdin's Magic Carpets" ... well, you can see why they're demoralized.

To me this is highly indicative of their (Ei$ner and Pre$$ler) current thinking. It is the direction for the future of the company. It is also why they have no problem whatsoever cutting (gutting is probably a more apt term) WDI. So all these "big plans" that have inundated the Rumor Board lately, are only smoke and mirrors! If they had any intention at all of creating just half the things on the Captain's recent list, they would be coveting their Imagineers, protecting them, stroking them in any way possible and making sure they are happy enough to NOT jump ship. Especially in these tough economic times. If they made cuts ANYWHERE else in the company other than WDI, it would be indicative of the economic times (which these are as well), and would show their dedication to long range planning, creativity, imagination and the SHOW!! It would show that they still want to be leaders, not followers.

Instead they are showing them the door, box in hand, escorted by security. What does that say for their philosophy regarding future projects? What does that say about their dedication to creativity? What does that say about what kind of SHOW they want to put on? That's what I find --- sad!

Is there another way to read it?

 

[ww52]

Landbaron - I see your point. I've been through it myself at a company that went through layoffs and eventually "merged" (but was really bought out) by another. The tagline we always used was 'you can't shrink to greatness'. Funny thing is, it eventually looked like the shrinking was intentional to make us an attractive buyout propspect. Could Disney be doing the same thing? Doubtful but who knows?

My point was based on a knee jerk reaction to the layoff numbers that were posted. It just struck me (and maybe YoHo and OnWithTheShow) that so many families are being affected by the economy. I personally felt a bit guilty caring too much if (for example) BK gets built or not.

But as you point out, there is another issue - that being is Disney huritng itself long term? Using one example of the companies listed - I doubt Motorola will ever recapture the market share it had not too long ago. They may be positioning themselves for a merger/buyout - so maybe the layoffs are a good business decision. It is certainly debatable if Disney's layoffs, especially in the creativity departments, are good long term business decisions.

(Another 4+ page thread in making here?)

 

[donald@home]

Exactly.

The point of the article isn't that WDI is cutting jobs. That is sad but it isn't the point. The point is that Disney does not see the mistakes they made (and are continuing to make) in not spending the money for a quality park (DCA) and by doing it on the cheap, even with the lack luster performance and less than profitable first few months. They think they did the right thing and TDS is the mistake. How can they learn from their constant mistakes if they don't see them as mistakes? That is so unlike the Disney that I thought I knew. THAT is what is sad about the article.

 

[design geek]

DVC-Landbaron -

It's tough to keep your thoughts on the "show" when you have to look over your shoulder for the pink slip.

Faster and Cheaper are symptoms of "fiscal responsibility" - the only opportunity for any "E-ticket" work is a result of OPM - Other People's Money (see Tokyo).

The biggest disappointment is hearing Marty, of all people, sing along to the Pressler/Eisner tune - what has happened to the creative vision / leadership in the company?

 

[DVC-Landbaron]

The biggest disappointment is hearing Marty, of all people, sing along to the Pressler/Eisner tune - what has happened to the creative vision /leadership in the company?

Yep! That's the way I see it too.

While I find the layoffs in general sad, it is very true that they are going on all over. It is everything else in the article that really depresses me.

And you said it is a symptom. There are some on RADP who have been used that term as well. Too many times we talk about one specific problem or topic and we pick it apart until we all can't stand it!! I'm probably one of the worst offenders.

But that's because for the most part, it is not that particular issue that is the problem. It is only a symptom of the decay and outright disregard the current management philosophy has for creativity, quality and the SHOW. So, even if once in a while they 'fix' a specific issue, the root cause is still there. "The patient has heart disease, cancer, major organ failure and a headache!!" The doctor prescribes two aspirin and proclaims with glee, "At least the headache is gone!!"

 

[AllanJ]

When your neighbor is out of work, it is a recession.
When you are out of work, it is a depression.

More Disney tips:
http://members.aol.com/ajaynejr/disney.htm

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3/75 (World Inn* off I4 near DD)
4/85 (Kon-Tiki* on 192)
'80s Disneyland once or twice
7/94 PORiv
9/97 ASMu
11/98 ASMu
12/98 (Knights Inn on 192)
9/99 ASMo
12/00 ASSp
11/01 ASSp planned
*no longer exists

 

[Another Voice]

Yes, there are a lot of companies that are laying off people right now. But what is going on at WDI has nothing to do with economics. Some people just have a vastly different idea from Walt about what the parks should be.

Imagine, for a few moments, a rumored conversation that may or may not have happened in Burbank recently…

“You know, The Shopping Mall King doesn’t think you need to pay for all those artsy types when you can go out and hire the company that put up those hotels in Vegas. I mean, why keep all those expensive pony tail & earring guys around (boy, do they know how to complain) when you aren’t going to build any of their rides anyway! Do you think The Gap has those kind of people around? Of course not. And if he brings up The Forum Shops in another meeting…

Anyway, if you want to put up a ride, just bid it out and have someone else do it. It’s not like it’s going to happen every year. Do you know how hard it is to get some corporation to fork over big bucks just to slap their name on an amusement park ride? And don’t think that Daddy BigBucks is going to cut his bonus to drop in another E-ticket. He’s still screaming at Strat Partnerships to find someone with a wallet to pay off that tower thing the dorks in Anaheim are whining over. Hell, he’s heading for another coronary because those guys still can’t sell “Soaring” and it’s the only ride that people like in that whole carny sideshow!

And shops and restaurants, well they’re not going to be Disney from now on anyway. Well, maybe some of the shops because we got all that Pooh plush to move – but the restaurants are someone else’s problem. Some clown will buy the whole burger joint operation lock, stock and French fry shooter and all those guys with shows on the Food Network are always angling for the high check crowd. And shops, well really, what’s the difference between Main Street and Disney WestSide? Nothing - that’s what. Besides, the guests are always wanting more brand name merchandise in the parks; did you see the sales per square foot numbers that old Mattel shop used to generate? Yea, let someone else worry about the store’s inventory and new merchandise and that whole maintenance thing. Sell them the space, lay down a few ground rules and gouge them on the rent – the guests won’t care but it will save us some nice coin.

Hotels? Well, that’s the problem. The Wealthy One likes buildings. I mean REALLY likes building. Some psychology or something – I just think it’s because his office looks out at the Dwarves butts all day; but The Midget got his take on it out in the public (good laugh too). But who needs designers here when Mr. Toupee brings by the pet architect of the month for another snob resort? And like those Motel Six buildings really NEED a designer? Gawd, you should see that Hawaiian Village thing they’ve got dreamed up for Katella & Harbor. It looks like something designed when you thought we would win in Vietnam.

Yea, there’s no reason anymore to have designers. But no one can make a decision around here these days. Half the management’s terrified their skin's going to sewn into The Big Golden Parachute (that Ski’s playing the game well, ain’t he? It’s going to be a hell of a book) or are too busy e-mailing resumes to Dreamworks or Warner. No ones cares about saving the ship – just head to the lifeboats and shove aside as many people as you need to get there. Hey, you got any leads on jobs?”

Please gather up all your personal belongings as you exit the company.

 

[AllanJ]

>>> some corporation to fork over big bucks just to slap their name on an amusement park ride?

Did Disney pay Aerosmith or did Aerosmith pay Disney to have the Rock and Roll Coaster named? (In other words, is Aerosmith an artist or a sponsor?)

So we are talking about outsourcing, have some other company come in an run a restaurant, have some other company come in and run a gift shop.

At a recent college reunion I noticed for the first time that outside concerns were catering food. I had to ask the manager of the dining hall (which used to cater all re-union events) whether student meals were still being prepared in-house. He "reassured me" that was still true.

I had heard over the years that many colleges have outsourced their food services.

 

[lrodk]

So we are talking about outsourcing, have some other company come in an run a restaurant, have some other company come in and run a gift shop.

More and more I come across examples of other companies setting up shop in the form of restaurants at the parks, especially Epcot. here are a couple of examples that I came across on my last trip:

Chefs de France is operated privately by the Bocuse family. They pay Disney a rental fee in exchange.

On my trip this past May I came across a free-standing espresso pavilion stand next to Mexico that just happens to make the best frozen frapuccinos I've ever had. Anyway, when I went to pay using my resort id card they told me that I couldn't use it because the shop was privately owned. I was stunned. I've never encountered a situation where I couldn't use my resort id card anywhere on property, especially at the parks.

I'm also told that the Mcdonalds sites at the parks, while staffed by Disney, will be operated by the parent company.

This seems to be the growing trend. Disney also sold some of it's property recently, for the first time, near the Crossroads area. They are trying their hardest to raise cash in any way possible, and practices like these seem like the easiest fix for them right now.

 

[OnWithTheShow]

The thing of it is the ideas that the imagineers had for all those new e-tickets still belong to Disney even when the imagineers leave. They can bring those back at any time. As far as I was made to understand it Rock n Rollercoaster was a joint agreement with neither party paying. I am amazed that the coffee place would not accept your resort ID, I thought that it was required that operating participants accept all the same forms of payment as WDW.

 

[Another Voice]

Outsourcing of some aspects of the parks has a long tradition at Disney. Many shops and almost all of the restaurants at Disneyland on opening day were run by outside concerns; and most restaurants in World Showcase are also run by outside vendors. Walt hated the results at Disneyland and bought out every lease he could. However, most of these operations are staffed by Disney employees and most aspects of their design and operation are overseen by the park.

The change is that Disney is ceding this control to lure in more outside companies. It really is a shopping mall model – Disney will lease space to someone who builds their shop or restaurant and runs it as they see fit. Look at ‘Burger Invasion’ at California Adventure – the food is identical to any McDonalds in the country; it uses McDonald’s signage, napkins, costumes, on and on. If it wasn’t for the fact that the prices are doubled you could be standing at the one in your own neighborhood. Same deal with Wolfgang Puck, the wine people, the bread people, the tortilla people, etc. And if Animal Kingdom had been built today, The Rainforest Café would be located on Safari Island, not outside the main gate (“rumor” – they may be moving very soon).

The philosophy was stated as “Mickey stops at the door” – whatever J.C. Penney wants to do inside their stretch of Main Street is really up to them. Of course, Disney would like for them to have a slightly Victorian theme inside, but they’re not going to push it (think shopping in Vegas). And if the companies really want to, they can hire WDI to do some of the design work. If anyone actually works for WDI come October….

It was my understanding that Aerosmith was paid for their ‘Coaster’ appearance, and most definitely for the music. As for rides and plans – no, it doesn’t take that much skill to run a Xerox machine, but if you want something new you need someone with talent. As for “the ideas are left behind” – have you ridden ‘Dueling Dragons’ at Islands of Adventure?

 

[ErikdaRed]

If I remember correctly the original shops on Mainstreet when DL open were not run by Disney, but by outside companies, so outsourcing is not new. Also, it meets up with the holy standard of "what would Walt do?"

 

[DVC-Landbaron]

ErikdaRed!! Thank you. You have provided me with a reason to use my newly acquired “The Quotable Walt Disney”. I really appreciate it. You said that

If I remember correctly the original shops on Mainstreet when DL open were not run by Disney, but by outside companies, so outsourcing is not new. Also, it meets up with the holy standard of "what would Walt do?"

So, maybe the question should be, ‘What would Walt want?” And not “What was Walt forced to do when finances wouldn’t allow any other course of action?” And Another Voice is quite right. Walt hated it. And as soon as possible he bought them out or took back control anyway he could.

Which leads to the quote of the day!!! From page 87 “On Business and the Walt Disney Company:

The first year {at Disneyland} I leased out the parking concession, brought in the usual security guards – things like that – but soon realized my mistake. I couldn’t have outside help and still get over my idea of hospitality. So now we recruit and train every one of our employees. I tell the security police, for instance, that they are never to consider themselves cops. They are there to help people. The visitors are our guests. It’s like running a fine restaurant. Once you get the policy going, it grows.

Certainly doesn’t seem to me to be “what Walt wanted”.