Cynthia's "love speech"

[DVC-Landbaron]

Well, just a follow up on the lay offs and the spin Disney puts on it. I thought everyone would like to read it for themselves:

Cynthia's "love speech"

What’d ya think?

 

[Another Voice]

The Orange Country Register has published an article about the layoffs at: http://www.ocregister.com/business/disney00620cci.shtml.

Among the choice bits, Disney called in people on their days off to help with the layoffs. These people were then taken aside and fired. Also, far fewer high-salaried types took the voluntary packages, so Disneyland increased the number of lower-level people that were let go: from 250 up to 400 people. These included warehouse workers, a fireman, secretaries and security people.

Isn’t it this point in the movie where we get a scene of the peasants gathering up their pitchforks and torches as they storm the castle to remove the Evil Pretender to the Throne?

 

[All Aboard]

Sometimes I get the feeling that some people think Disney is the only company in the US doing layoffs right now.

 

[YoHo]

Thank you gcurling.


I would just like to agree, I've read tons of reports from tons of companies over the past 6 months. the Disney layoffs aren't even a loogey in the spitoon.
Nortel announced 10,000 additional layoffs, bringing their total to 30,000. Motorola layed off 25,000 with new announcements for more. Where I work, my division was reduced from 150 to 25, the remaining 25, myself included have jobs only until August of next year. And that's only assuming that they decide to finish our project.


Having pointed out that these layoffs both aren't unique and aren't bad compared to what non magical companies are doing to their workforces. I would like to point out that Cynthia's address sounds just like every Email our VP sent out for the past 2 months up until she was thrown out the door. To me, that's corporate speak for, I don't know whats happening, but I have to keep you motivated so we don't all get fired.

Anybody who thinks that Disney's attendence numbers don't directly relate to the economic downturn should readjust there mouse ears. Not that there aren't other important factors, And I can't explain DL, but I garuntee WDW is feeling it.

 

[Wes]

The difference with Disny is that the employees in danger of being laid off are supposed to be presenting to the public "the happiest place on Earth".

Their job is to perpetuate an illusion, which is why they are called cast members. Making it harder for them to sustain the illusion means they are being asked to be more like the actor who has to go on stage in a comedy after just learning their spouse has been seriously injured in a car accident. So acting is going to be a much more important skill now for cast members.

Down-sizing is indeed a wide-spread reality. It has had a serious negative impact on employee loyalty in all places that have used it ... and that's just talking about the survivors of the down-sizings. This reaction is going to last for a very time ... anybody over the age of 20 is going to have to pass from the scene before this works its way out of the pipeline.

Down-sizing may help for the short-term -- and it may be really necessary in some truly critical cases, but it will take some really creative leadership and not just herd mentality knee-jerk management to deal with the problem in the long term.

In as creative an industry as Disney built, the hope was that such creative leadership would be there (after all, Disney is marketing their method in Disney Institute workshops).

So, like it or not, the standard for Disney really is different -- both at the "happiest place on Earth" interface with the public and with the creativity that created the company in the first place.

 

[DVC-Landbaron]

The LandBaron rises and cheers wildly!!!

Bravo!! Well said, Wes!!!

 

[Another Voice]

Well, actually yes – being a creative business SHOULD preclude them from laying off the very people that are in the forefront of creating their product. Whether it’s animators or park cast members, these are the people that truly are Disney.

What an economic downturn should prevent is paying $50 million so a golfer will smile at the cameras, it should prevent spending $200 million on a movie who’s script wouldn’t pass a high school drama class, and it should prevent blowing $700 million on recreating some executive’s version of Cooney Island in Anaheim.

It’s all a question of priorities. And those are very clear these days.

 

[Safari Steve]

Just wanted to mention that (at least here at WDW) most of the people layed off almost never came in contact with a guest during a normal day of business.

 

[Wes]

Originally posted by Safari Steve
Just wanted to mention that (at least here at WDW) most of the people layed off almost never came in contact with a guest during a normal day of business.

In my note, I was looking more at the survivors than those who were laid off. Once the layoffs start and will clearly happen again, the dark cloud is over everyone's head who is still there. So it is the cast member who is still there -- but wondering for how long -- who I was thinking about.

 

[Safari Steve]

As far as I've seen in my fellow CMs, no one who interacts with guests is wondering "how long?" or simpering in puddles of their own tears. In fact, one CM I know who was given a package and refused actually stayed with the company and avoided being layed off by transferring into a front line FastPass supervisor position that 1. He likes better than his previous position, 2. has more job security, and 3. is of more value to guest satisfaction. All told, the company benefits, the CM benefits, and the guests benefit. And no one's cowering.

 

[HorizonsFan]

First you say:

Among the choice bits, Disney called in people on their days off to help with the layoffs. These people were then taken aside and fired. Also, far fewer high-salaried types took the voluntary packages, so Disneyland increased the number of lower-level people that were let go: from 250 up to 400 people. These included warehouse workers, a fireman, secretaries and security people.

Then you say:

Well, actually yes – being a creative business SHOULD preclude them from laying off the very people that are in the forefront of creating their product.

Which is it? Or are those warehouse workers and security people at the forefront of creating the Disney product?
Of course, I'm being somewhat facitious but you seem to think that any layoffs at Disney are unwarranted. All I ever hear from you is how the evil Ei$ner and his minions are making mistake after mistake in running the business. What exactly would you do in the current situation? That would be impossible for me to answer because none of us have any hard data about what the actual financial position of WDC is.

 

[Another Voice]

What would I have Eisner and his minions do? – leave the company.

In the second part of my post, I listed nearly one billion dollars worth of wasted capital. This is not including the money already thrown away for Go.com and the entire internet fiasco. Nor did I include any of the peripheral business of questionable worth. Did you hear the rumor about Disney about to drop a couple billion or so to buy up radio stations? These are all the same mistakes that Disney made back during The Dark Days – Arvida, Gibson Greetings and the like. But now it is on a much grander scale.

Now, let me turn the question around – how many animators do you want to fire to keep the Anaheim Angels? What attractions should be closed so Hollywood Records can afford to put out O-Town’s next album? How many cast members should loose their jobs to pay-off the next high level executive that gets the boot? How much are you willing to pay for each FastPass you pick up so another remake of ‘The Love Bug’ can be put into production?

Brand loyalty is nice, but it should not blind one to reality. The only way Disney will survive is to produce quality products and to run a well managed business. Tough choices should be made, and simply firing the help is the easy way out. Layoffs do not solve the real issues with the company – layoffs do not fill hotel rooms, layoffs do not put fresh product in The Disney Stores, and layoffs do not make popular animated movies. Wait – actually Disney layoffs did create a popular animated movie, but the success of Dreamworks is another topic.

Tiger Woods – he’s not going to appear in ads for Disney, he’s not going to be a company spokesman. All he agreed to do is to appear on ABC to play golf. Doesn’t he do that for free right now? As for not affecting the layoffs – where did his $50 million check come from? Eisner’s bonus?

 

[HorizonsFan]

What would I have Eisner and his minions do? – leave the company.

That wasn't the question. The question was, what would you do differently? You've listed all the mistakes you feel that current management has made. What would you do differently?

 

[HBK]

That wasn't the question. The question was, what would you do differently? You've listed all the mistakes you feel that current management has made. What would you do differently?

Did you read his post? I think he answered it pretty well.

In the second part of my post, I listed nearly one billion dollars worth of wasted capital. This is not including the money already thrown away for Go.com and the entire internet fiasco. Nor did I include any of the peripheral business of questionable worth. Did you hear the rumor about Disney about to drop a couple billion or so to buy up radio stations? These are all the same mistakes that Disney made back during The Dark Days – Arvida, Gibson Greetings and the like. But now it is on a much grander scale.

I'm pretty sure his point is to stop investing in silly business ventures.

Personally I'd start investing more in the company's core businesses and stop trying to do what they're not good at.

They got out of the Internet business because they didn't know how to make it work.

Instead of making your cuts at your core business competencies (Animation, Theme parks) make them at the ABCs of the company.

 

[DisDuck]

What is right about Tiger Wood's signing? It has been shown by facts that ratings increase when Tiger is present, especially on Sunday's. So ABC can raise advertising rates because rating points are higher so ABC does not need to syphoon off money from other areas of Disney. And Tiger does not appear for free except at the majors (& maybe a few others). He was paid a promotional fee to appear in this weekends Buick Classic.

Also, it has been stated by other posters (including me) that if Disney were just its core businesses in today's economic climate some raider would have come buy and bought it up. May have been a good thing or may have been a bad thing. But I for one at not willing to take that chance.

And yes, Eisner and crew have made some poor decisions lately. Gee, they are human you know. They cannot be right 100% of the time, no matter how much we want them to be. Now that said, it might be the time for Eisner to look towards retirement. Could be burnout happening after 16-17 years at the helm.

Even Walt made some poor decisions, Fantasia was considered one of them.

So, besides dumping all but core businesses what would 'YOU' do to 'save' Disney and keep it independent.

 

[Sarangel]

Instead of adding onto this already long thread, how about starting a new one with that question. It is an interesting one... DisDuck, you asked the question, do you mind starting the new thread, or would you like me to do it?

Sarangel

 

[DisDuck]

Sarangel, you start it. I have been done with road with DVC a while back. No one really wanted to or had an answer. It just fell into the Eisner is Evil bag.

Maybe with AV around it will take a more practical turn.

 

[HBK]

And yes, Eisner and crew have made some poor decisions lately. Gee, they are human you know. They cannot be right 100% of the time, no matter how much we want them to be.

I'm going to answer that statement with a quote from a Disney movie.....Remember the Titans.

During half time of the State championship game, Luther addresses coach Boone (who is giving the team a "you're doing your best speech").

He says "I'm not perfect. I never claimed to be. None of us are. But as a team, you demanded more of us. To this moment, we have not lost a game. And that makes this team.....perfect. Now if it's alright by you, I'd like to keep it that way."


Now, Ei$ner isn't perfect. Noone who works at Disney is. Noone in the world is. But, as a company, there should be enough checks and balances which will make mistakes go away before they harm the product. Ei$ner has no such checks and balances. He has filled his company and executive board with yes men...which doesn't hide mistakes.

As customers, we have always demanded perfection. The problem is somewhere along the line, the company has decided that "perfection" isn't important to them any more.

 

[All Aboard]

I'm pretty sure his point is to stop investing in silly business ventures. Personally I'd start investing more in the company's core businesses and stop trying to do what they're not good at. They got out of the Internet business because they didn't know how to make it work. Instead of making your cuts at your core business competencies (Animation, Theme parks) make them at the ABCs of the company.

What I read here is a suggestion to point cuts at business units that are not doing as well as the "core business." In addition, I read that you think Disney should start dumping its non-core businesses.

I'll take ABC for example, since you specifically mentioned it. What would happen to the value of ABC if Disney started to make cuts? Would that be a good strategy if the next step were to sell it? The corporate world is a little smarter than the investing world (in most cases.) They would see right through the strategy of beefing up profits to drive value. What you would be left with is a mess of a network or a big loss on the sale. Either way, theme parks and animation would likely suffer in the long run even more.

I still agree that the ABC aquisition, the sports franchises and internet venture were mistakes, but the only way to solve those mistakes is to beef up value legitimately and then sell.

 

[HorizonsFan]

Finally! Some constructive conversation!
I think it's pretty clear what the anti-Eisner faction wouldn't do. (Pretty much anything Eisner has done in the last 7 years or so...)
I just wanted to be clear on what they would do at this point to keep WDC profitable, growing and independent.
Thanks!