WDW layoffs

[redrosesix]

Exactly.

The article does not say that Disney laid off every executive who was offered the package, regardless of whether that executive wanted to accept the offer or not.

Essentially, the article says that phase 1 was a buyout offered to about 600 executives. (Think of this as trimming headcount in the top layers of the org chart through a voluntary plan.) And phase 2 is to "lay off an unspecified number of workers as it restructures its U.S. theme parks in the wake of declines in attendance and revenue." (Think of this as trimming headcount throughout the Disney Parks & Resorts sector. It could mean thousands of jobs, with nothing voluntary about it.) The article doesn't use the terms "phase 1" and "phase 2," but looking at it that way might clear up misinterpretation.

In some cases, an executive who chose not to accept the buyout will be laid off instead -- with a less generous separation package. However the vast majority of executives will undoubtedly stay, though often with new or additional responsibilities.

According to the podcast the other night, some of those who didn't accept the buy out package are now being canned.

I'm gonna repost this cause it seems we're still arguing over something clearly stated in this article..

Having just survived a RIF myself...usually this is the first step in a larger plan for a company to create some cost savings.

The first step is what we are hearing about. A voluntary incentive package for employees with large income's to leave. Usually these are pretty lucrative and some percentage of the employees that are offered this will take it.

Then come the releasing of the undesirables. Poor attendance, written up, etc.

The third step is to offer a smaller package to the lower level employees. Usualy it is targeted at people with the most senority and who have the better benefits.

If the company has to go further then you know things are bad.

I think you're interpretation of events is closer to reality -- we just weren't hearing about it. As pointed out by the fact that although WDC released a statement to the buy-out package had been satisfactory, a short time before they started firing said employees.

 

[Horace Horsecollar]

According to the podcast the other night, some of those who didn't accept the buy out package are now being canned.

Yes, and that's why I wrote, "In some cases, an executive who chose not to accept the buyout will be laid off instead -- with a less generous separation package."

I think you're interpretation of events is closer to reality -- we just weren't hearing about it. As pointed out by the fact that although WDC released a statement to the buy-out package had been satisfactory, a short time before they started firing said employees.

The point that some of us are trying to make is that offering a buy-out package to the top 619 executives at Disney Parks & Resorts (except for a few who were excluded) is not the same as eliminating all 619 of them.

The goal of the buy-out was a partial reduction of the executive ranks. Now that the buy-out is over, there's a restructuring and lay-offs of "surplus" employees that goes well beyond just the executive ranks (and that can include some executives who chose not to accept the buy-out offer).

 

[redrosesix]

Yes, and that's why I wrote, "In some cases, an executive who chose not to accept the buyout will be laid off instead -- with a less generous separation package."


The point that some of us are trying to make is that offering a buy-out package to the top 619 executives at Disney Parks & Resorts (except for a few who were excluded) is not the same as eliminating all 619 of them.

The goal of the buy-out was a partial reduction of the executive ranks. Now that the buy-out is over, there's a restructuring and lay-offs of "surplus" employees that goes well beyond just the executive ranks (and that can include some executives who chose not to accept the buy-out offer).

I agree with your reasoning, just pointing out that according to the podcast, more than "some executives" are being laid off ie. it was described as a "bloodbath"

 

[Sehsun]

I'm sorry if this was mentioned already, but does anyone know if these layoffs will affect full-time, part-time, or seasonal cast members (or all of them)? Just curious.

 

[kennancat]

I saw that there was a lot of debate in this thread earlier about how many executives took the buyout, so I thought you mind find this article from today's Sentinel to be of interest: http://www.orlandosentinel.com/business/orl-biz-disney-shareholders-meeting-031109,0,3884130.story

To quote from it:

About 50 executives in Walt Disney Co.'s theme-park division took recently offered buyouts, the company said Tuesday.

Chief Executive Officer Bob Iger revealed the tally during a question-and-answer session at the company's annual shareholder meeting in Oakland, Calif.

The figure amounts to approximately 8 percent of the 619 executives across Disney's U.S. theme parks who were offered buyouts in January. More than half of the buyouts — 313 — were offered to employees in Orlando.

Iger initially said the 50 buyouts were all in Florida, but the company later clarified that they occurred across the parks-and-resorts division.

Disney also has laid off some executives, as it cuts costs amid what Iger called "perhaps the most difficult economic times in our lifetimes." The company has declined to identify all of those who have left already or are planning to depart.

"We continue to look for ways to adjust our cost base to changes in demand," Iger said.

 

[Metro West]

I'm sorry if this was mentioned already, but does anyone know if these layoffs will affect full-time, part-time, or seasonal cast members (or all of them)? Just curious.

I'm guessing here...but if Disney does the same thing as other companies, it would affect everyone. Seaonsal and part-timers first and then full-timers based on seniority. Again...it's merely a guess as I don't know how they will decide who goes.