O o this doesn't look good.

[Disneyadore]

Walt Disney Co. braces for worsening economy

Executives have been meeting this week to prepare belt-tightening measures that could include job cuts, according to people familiar with the discussions.
By Dawn C. Chmielewski and Meg James
October 31, 2008
Bracing for a worsening economy and further declines in ad spending, Walt Disney Co. executives have been meeting this week to prepare belt-tightening measures that could include job cuts, according to people familiar with the discussions.

Disney executives said Thursday that no decisions had been made on possible layoffs. People familiar with the situation have said reductions are being contemplated companywide. Disney spokespersons declined to comment.

Last week, ABC News President David Westin asked his staff in a memo to be more frugal "to make sure that we have all the resources we need to cover the news." The cost-saving measures include recommendations that executives should fly "one grade below what they're entitled to," and "stay in 'B' level hotels." Holiday parties would be scrapped this year, and the news division will cancel newspaper and magazine subscriptions.

Anne Sweeney, co-chair of Disney Media Networks, has asked senior staff to recommend possible cuts in case the economy deteriorates further. Other divisions have been asked to make similar evaluations, according to one executive.

Disney is not the only entertainment company to retrench in anticipation of recession. NBC Universal said two weeks ago said that it was planning to slash $500 million in spending -- 3% of its budget -- because it expected "unprecedented economic challenges" in the year ahead.


Source: L.A.T.

 

[Mouseaholic!!!]

How on earth can ANYONE be surprised?

The trouble is....since Iger arrived the budgets were already slashed to beyond the bone in many places. WDW has shown the results of these cuts....shabby around the edges. We have noticed the dumbing down of menus at all the restaurants at WDW and DL.

DH works for ABC and they have already slashed his division from 7 people on shift to 3 <--stress is now overwhelming. It's a good thing they have gold-standard health insurance....DH uses it more with stress-related problems.

In many places already they are too short staffed....what else will they cut?


But hey, lets break ground on the Hawaii DVC property!!! GREAT place to spend $$$ right now.

 

[zulemara]

I think the biggest place to cut is at the top. Forgive the politics quote here, but "the trickle down effect" could actually work in cutting spending in a corporation. Make execs fly regular class, stay at a best western, cancel the subscriptions like they said, etc. On that note, cutting a company party hurts morale IMO and that should be allowed.

Either way, they need to cut from the top before they start laying people off. I had heard from my CM friends that cuts were coming. It's only a matter of time. Luckily as a CP, my 30 hrs are guaranteed

 

[Snowgod]

If they stop holding Annual meetings away from the home office and stop paying executive bonuses they could save a fortune. Get rid of all the MBAs and they could afford more park staff. Get rid of Iger and save enough to expand the monorail.

 

[mitros]

I think the biggest place to cut is at the top. Forgive the politics quote here, but "the trickle down effect" could actually work in cutting spending in a corporation. Make execs fly regular class, stay at a best western, cancel the subscriptions like they said, etc. On that note, cutting a company party hurts morale IMO and that should be allowed.

Either way, they need to cut from the top before they start laying people off. I had heard from my CM friends that cuts were coming. It's only a matter of time. Luckily as a CP, my 30 hrs are guaranteed

There ya' go, my thoughts EXACTLY. And this holds true for all of these big corporations. Get rid of some the high rankers, and you would be able to spare the "ground level" troops that make Disney what it is.

 

[mitros]

Sorry, but I still do not see any "slacking off" of crowd levels at WDW. If they were to start layoffs now, lines everywhere on property would be far worse.

 

[rantnnravin]

how about axing the guy who greenlit "cavemen"
that should allow for at least a hundred full-time employees to be left on the front-line

get rid of all those vice presidents, senior vice-presidents, junior vice-presidents, assistant vice-presidents...
and leave the chicken strips on the plates!

 

[wdwpins]

Germany has a law that says a German CEO can earn only 17 times the salary if his or her lowest paid employee.

What do you think if this law? It is a good idea for American CEO's?

 

[rantnnravin]

Disney front line employee annual salary: $13,520

President of the United States annual salary: $400,000

Bob Iger:
Compensation
Salary $2,000,000.00
Bonus $0.00
Other Annual Compensation $0.00
Long term incentive plan payouts $0.00
Restricted stock awards $7,931,660.00
Security underlying options $0.00
All other compensation $745,177.00
Option awards $ $2,243,180.00
Non-equity incentive plan compensation $13,670,686.00
Change in pension value and nonqualified deferred compensation earnings$1,108,498.00

Total Compensation

$27,699,201.00

yeah, I think a change might be in order...

 

[MJMcBride]

We have noticed the dumbing down of menus at all the restaurants at WDW and DL.

Thats related to the dumb Dining Plan more than anything else

 

[deej696]

If they stop holding Annual meetings away from the home office and stop paying executive bonuses they could save a fortune. Get rid of all the MBAs and they could afford more park staff. Get rid of Iger and save enough to expand the monorail.

I never have understood this either. The shareholder meetings are held all over the place and I'm sure the Company justifies it by saying "Disney is a broadly held company with shareholders all over the country." But in my opinion its nothing more than an excuse for the executive team to fly all over the place and stay at the Four Seasons. In every book I read about the history of Disney, they are always mentioning shareholder meetings at WDW. Makes sense to me... Granted this is a small piece of the pie, but its representative of the culture of corporate America....

 

[Yen Sid]

one thing that would really work is to get all these idiots to stop sueing Disney because they want to make a quick buck. If Disney did not have to fight in court all the time they could save money by letting some of their lawyers go, LOL.

 

[FireDancer]

Germany has a law that says a German CEO can earn only 17 times the salary if his or her lowest paid employee.

What do you think if this law? It is a good idea for American CEO's?

I do not want to legislate salaries. It is the same reason I don’t want a salary cap in sports. If a business wants to pay someone an astronomical salary let them. I don’t care if that salary is for an accountant of a first baseman.

What is needed in board rooms is more governance. A board is supposed to look after the interest of the stock holders, not the interests of management. If a board doesn’t want to compensate a CEO they don’t have to approve the contract. If that contract isn’t in the stockholders interest, it shouldn’t be approved. If boards did their intended function then the contracts would take care of themselves, performance would be rewarded and failure would be punished.

 

[Sir Robin Hood]

Disney front line employee annual salary: $13,520

Off-subject; newbie question here.

Considering the cost of living in Central Fla, how do front line employees make ends meet? I know Disney runs its paid college internship program for students, but what about other folks living in the area? 13.5K wouldn't cut it even in cheaper areas to live, nonetheless Florida.

 

[Mouseaholic!!!]

Off-subject; newbie question here.

Considering the cost of living in Central Fla, how do front line employees make ends meet? I know Disney runs its paid college internship program for students, but what about other folks living in the area? 13.5K wouldn't cut it even in cheaper areas to live, nonetheless Florida.

Many don't stay for long once they see the magic from the inside. I have worked with 3 former castmembers in my little office in Maryland. ALL of them left for more $$$ at Universal and a better work environment (respect).

Perhaps people will keep that $13,500 figure in their heads when it comes time to tip WDW castmembers where appropriate. It may mean an extra gallon or two of milk for their children or even a wild night out for the family of pizza and a movie!!!

 

[Sir Robin Hood]

Many don't stay for long once they see the magic from the inside. I have worked with 3 former castmembers in my little office in Maryland. ALL of them left for more $$$ at Universal and a better work environment (respect).

Perhaps people will keep that $13,500 figure in their heads when it comes time to tip WDW castmembers where appropriate. It may mean an extra gallon or two of milk for their children or even a wild night out for the family of pizza and a movie!!!

I've always wondered why I never see the same CM twice whenever I visit. The turnover rate must be ridiculous. Working at the most magical place on earth carries a heavy price.

 

[manning]

Get rid of all the MBAs and they could afford more park staff. QUOTE]

This comment triggered a conversation I had with an owner of a company we did business with. He was a partner with his brother who earned an MBA. He didn't go to college but is the brains of the company and holds no high regard for his brother.

He said his brother first got a BA degree then an MBA and now going for a PHD.

He defined the degrees as such

BA = Bad Advice
MBA = More Bad Advice
PHD = Piled Higher and Deeper

 

[Disneynutt]

"We have noticed the dumbing down of menus at all the restaurants at WDW and DL."

I'm sorry... what do you mean by "dumbing down" of menus? I'm just curious.

Thanks.

 

[betterlatethannever]

"We have noticed the dumbing down of menus at all the restaurants at WDW and DL."

I'm sorry... what do you mean by "dumbing down" of menus? I'm just curious.

Thanks.

There have been many many posts on the Restaurants board regarding this. When the dining plan first came out, not all the entrees at participating restaurants were part of the plan. Pleople complained, so all the entrees became part of the plan. Certain entrees (e.g. lobster) had an additional charge, but most did not.

So, people on the Dining Plan ordered the most expensive items on the menu (why not). Restaurants were losing money. Rather than have varying extra fees for different entrees, restaurants eliminated many if not all the entrees that were above the dining plan threshhold. The results were that menus became smaller and less diverse (cheaper buying bulk).

Of course the above is disputed by others Thus the mamy threads on the Restaruants Board.

Ed

 

[TDC Nala]

There have been many many posts on the Restaurants board regarding this. When the dining plan first came out, not all the entrees at participating restaurants were part of the plan. Pleople complained, so all the entrees became part of the plan. Certain entrees (e.g. lobster) had an additional charge, but most did not.

So, people on the Dining Plan ordered the most expensive items on the menu (why not). Restaurants were losing money. Rather than have varying extra fees for different entrees, restaurants eliminated many if not all the entrees that were above the dining plan threshhold. The results were that menus became smaller and less diverse (cheaper buying bulk).

Of course the above is disputed by others Thus the mamy threads on the Restaruants Board.

Ed

DL doesn't have the dining plan (they have one, but it isn't as explosively popular as the WDW plan). Yet, their menus have been changed in the same way. It's a company-wide standardization.