Disney Parks laying off 28,000 cast members

[RamblingMad]

It’s the same in any affected resort. The issue with both Disneyland and Disney World is that the areas immediately surrounding them are entirely dependent on the presence of each resort. So many hospitality jobs, even those not employed by Disney, are predicated entirely on Disney operating at close to its normal capacity. Anyone still looking for a job in the same industry will need to look into the larger city nearby as a whole.

To be honest, though, the hospitality industry is currently DOA. Florida’s in better shape right now, but capacity and demand is significantly lower. It’s going to take years for anyone to recover fully. Most laid off employees are better off looking for employment in a different industry.

This isn't getting laid off and finding another similar job. This is getting laid off and figuring out how to move your family to a different city with work unrelated to the travel business. And this is hitting the lowest paid workers. We really need more stimulus for this group.

 

[afan]

It's all about perception though, goodwill and not soiling the brand.

It's business though. People don't care that the airlines are doing the same thing today because of lots of reasons.

This happens with businesses all the time. Comcast has done it at universal and the othet theme parks. Why is Disney held to such a higher standard than every other company? Because they create "magic"?

Yes this sucks, yes this is a Disney board, but it's not the only company to do it. Being unemployed sucks, especially when it's not your choice, but lots of us and others have gone through it.

You can discuss and argue about how bad it all looks but it still happened. If you don't like how they treat their employees then stop giving them money for anything. We all have to make our choices in the businesses we choose to support or not support and why, so you have to ask yourseld is this a big enough issue to me or is that "magic" enough to realize that it's business and ** happens.

 

[BrianL]

Will they even get bonuses this year? Don’t bonuses go by how well the company is doing?

There will certainly be bonuses, but they may be significantly reduced. They are usually based on achieving goals, so for some departments that may be easier than in others. It will definitely be somewhat impacted by the overall business performance.

 

[jknezek]

Those salaries aren't correct. Iger made $65 million IN ONE YEAR in 2018. That's almost $36,000 per hour. Last year he made $48 million. Your salary amounts are base salaries, which are only a fraction of their income from Disney. And those cuts were just to base salaries. Absolute peanuts to these execs. They make tens of millions in bonuses, and they protected those bonus while cutting everyone else.

And according to this, Disney was sitting on over $23 BILLION in cash at the end of June.

https://www.investing.com/equities/disney-balance-sheet
And 2/3 of these folks were part time. $12 * 25 hours a week * 50 weeks a year, since most probably take a week or two off a year, comes to about $15k a year for those employees. I doubt their benefits packages are a lot, so let's just round up to $20k a year for these part timers. That comes up to about $375 million a year to keep those ~18,700 folks on board. Disney could easily absorb that. There was no need for a cut this large.

So, if a company has $26 Billion in cash sitting around and had no problem paying one person over $65 million for ONE YEAR and preserved their multimillion bonuses for this year, there is no excuse for this. NONE. Especially for a company that loves to get plenty of good press for inclusion and equality. Obviously, inclusion and equality doesn't mean much when it comes to reaping the financial success and security these employees played a big part in creating for the company, unlike the execs, who have already shared in more than their fair share of both.

You clearly do not understand the difference between Salary and Bonus. For the executives, only their SALARY was cut. And I correctly quoted the most recently known SALARY numbers. Bonuses are completely different and dependent on past awards and performance and given on in the hope of increasing future performance. Will the senior executives get new massive bonuses this year? That remains to be seen, but I suspect not. Bonuses that were previously awarded and won and are currently vesting are a different matter, a matter of contract, and generally hard to change at this point.

I notice you have an axe to grind, but comparing awards given in good years to employee layoffs in catastrophic years is.... poor methodology at the very least.

 

[andyman8]

This happens with businesses all the time. Comcast has done it at universal and the othet theme parks. Why is Disney held to such a higher standard than every other company? Because they create "magic"?

Friendly reminder that NBCUniversal hasn’t reinstated executive pay fully and they implemented even more sweeping pay cuts and rollbacks.

Also, Disney is held to a different standard because they hold themselves to a different standard (and charge a premium for it). They’re all about “We’re all Cast Members.” When you put that out there, people — especially your hardcore fans — will hold you to it. The level of emotional investment they ask for from their CMs is unlike anything I’ve experienced in any other workplace at a variety of levels.

Again, I’m not arguing these weren’t necessary. I just get annoyed when there’s this general impulse to say “it’s business, get over it.” It’s okay to be very upset and feel devastated for the CMs and upset that Disney couldn’t at least have held out on the pay restorations. It’s okay to feel that way and still continue to visit the place you love.

 

[rteetz]

Report that the entire NBA Experience staff has been let go.

 

[mi*vida*loca]

Report that the entire NBA Experience staff has been let go.

Makes sense since the finals are almost over.

 

[jknezek]

Makes sense since the finals are almost over.

Makes sense since the place was a bad idea that resulted in a massive dud in good times. I can't imagine it being anything more than a ghost town for the foreseeable future.

 

[mi*vida*loca]

Makes sense since the place was a bad idea that resulted in a massive dud in good times. I can't imagine it being anything more than a ghost town for the foreseeable future.

Oops. I read that wrong. Thought it was referring to the staff that assisted with the NBA bubble. **facepalm**

 

[Disney Bobby]

You clearly do not understand the difference between Salary and Bonus. For the executives, only their SALARY was cut. And I correctly quoted the most recently known SALARY numbers. Bonuses are completely different and dependent on past awards and performance and given on in the hope of increasing future performance. Will the senior executives get new massive bonuses this year? That remains to be seen, but I suspect not. Bonuses that were previously awarded and won and are currently vesting are a different matter, a matter of contract, and generally hard to change at this point.

I notice you have an axe to grind, but comparing awards given in good years to employee layoffs in catastrophic years is.... poor methodology at the very least.

No, I understand completely. I don't care about "salary". I'm talking about what they people actually receive in compensation. BIG difference. To act like $3 million is all Iger was getting and saying it doesn't make a difference is very misleading. They will still get tens of millions in bonuses this year. Wait and see.

And it's not an "axe to grind". It's reality. They only took a temporary cut to their base salary, and they did not state that they would be giving up any HUGE bonuses. The reality is that these layoffs are probably being done in order for them to meet a goal to get their bonuses.

And they had $23 billion in cash. BILLION. Sorry, they could absorb a few hundred million to keep most of these folks around. But they won't do that. Why? Because that charge would affect the stock price. And all of them are absolutely loaded with Disney stock and stock options.

 

[Brianstl]

Friendly reminder that NBCUniversal hasn’t reinstated executive pay fully and they implemented even more sweeping pay cuts and rollbacks.

Also, Disney is held to a different standard because they hold themselves to a different standard (and charge a premium for it). They’re all about “We’re all Cast Members.” When you put that out there, people — especially your hardcore fans — will hold you to it. The level of emotional investment they ask for from their CMs is unlike anything I’ve experienced in any other workplace at a variety of levels.

Again, I’m not arguing these weren’t necessary. I just get annoyed when there’s this general impulse to say “it’s business, get over it.” It’s okay to be very upset and feel devastated for the CMs and upset that Disney couldn’t at least have held out on the pay restorations. It’s okay to feel that way and still continue to visit the place you love.

I will say this in Disney's defense, they have been losing people outside of the Parks, Experiences and Products division. I think the fear of losing more to competitors probably played a role in the decision to restore full pay. John Lasseter at Skydance is probably the most visible example of a competitor poaching Disney's talent.

 

[RamblingMad]

No, I understand completely. I don't care about "salary". I'm talking about what they people actually receive in compensation. BIG difference. To act like $3 million is all Iger was getting and saying it doesn't make a difference is very misleading. They will still get tens of millions in bonuses this year. Wait and see.

And it's not an "axe to grind". It's reality. They only took a temporary cut to their base salary, and they did not state that they would be giving up any HUGE bonuses. The reality is that these layoffs are probably being done in order for them to meet a goal to get their bonuses.

And they had $23 billion in cash. BILLION. Sorry, they could absorb a few hundred million to keep most of these folks around. But they won't do that. Why? Because that charge would affect the stock price. And all of them are absolutely loaded with Disney stock and stock options.

Ray Dalio has a good presentation on this. You can find it on YouTube.

 

[WorldOfPooh]

It's business though. People don't care that the airlines are doing the same thing today because of lots of reasons.

This happens with businesses all the time. Comcast has done it at universal and the othet theme parks. Why is Disney held to such a higher standard than every other company? Because they create "magic"?

Yes this sucks, yes this is a Disney board, but it's not the only company to do it. Being unemployed sucks, especially when it's not your choice, but lots of us and others have gone through it.

You can discuss and argue about how bad it all looks but it still happened. If you don't like how they treat their employees then stop giving them money for anything. We all have to make our choices in the businesses we choose to support or not support and why, so you have to ask yourseld is this a big enough issue to me or is that "magic" enough to realize that it's business and ** happens.

Arrogance and treating people like garbage eventually catches up to you.

Look at what happened to the American car industry or Blockbuster or AOL or IBM.

 

[SmartyBacon]

What I don’t get is how Universal has avoided the same fate.

I believe Comcast FY starts Jan 1 and DIS FY starts Oct 1. That might have something to do with the timing.

 

[BrianL]

I will say this in Disney's defense, they have been losing people outside of the Parks, Experiences and Products division. I think the fear of losing more to competitors probably played a role in the decision to restore full pay. John Lasseter at Skydance is probably the most visible example of a competitor poaching Disney's talent.

Well, to be fair, Lasseter wasn't exactly "laid off" but you are right in that if they want to retain talent they have to pay for it. It's not like these executives are worthless - they are probably very good at their jobs. As unfortunate as it is, right now the parks are operating at very low capacity or not at all - how can they justify keeping everyone? Nobody wanted this.

 

[skeeter31]

Report that the entire NBA Experience staff has been let go.

Said this in the news thread, but it makes sense as that will probably be one of the last attractions on property to reopen. And when it does reopen, any CM would be able to shift over there to operate it. It’s definitely showing with the “show” CMs that get laid off, more often than not it’s happening based on projected reopening times. If it’s entertainment at a hotel that may not reopen until middle of next year, laid off. Attraction that will be closed for a long time, laid off.

 

[jknezek]

No, I understand completely. I don't care about "salary". I'm talking about what they people actually receive in compensation. BIG difference. To act like $3 million is all Iger was getting and saying it doesn't make a difference is very misleading. They will still get tens of millions in bonuses this year. Wait and see.

And it's not an "axe to grind". It's reality. They only took a temporary cut to their base salary, and they did not state that they would be giving up any HUGE bonuses. The reality is that these layoffs are probably being done in order for them to meet a goal to get their bonuses.

And they had $23 billion in cash. BILLION. Sorry, they could absorb a few hundred million to keep most of these folks around. But they won't do that. Why? Because that charge would affect the stock price. And all of them are absolutely loaded with Disney stock and stock options.

Bonuses are awarded on meeting goals and paid in the future. Yes, they are out of control. I won't dispute that. But the 60MM+ bonus was awarded over years of making past targets and then being paid out. He made 40MM+ in bonuses the year before and 30MM+ in bonuses before that. These numbers are crazy, but he's also been CEO for 15 years of one of the most successful companies in the industry. Bonuses tend to rack up when you have that kind of long term track record because you keep meeting those future targets.

Should he have donated his past bonus, or his future bonus, to keep more employees? I have no idea. Not even sure how that would work. Legally can he personally pay those employees to keep them on Disney's book? I doubt it. But that's not the Disney company's decision to make. He's already earned that money. He would need to take that step. The company could adjust his targets in the future, though with Chapek taking over I'm not sure what targets Iger still has. But the money he's already earned is his. The company simply has to live up to its contractual obligation to pay it.

 

[Brianstl]

Well, to be fair, Lasseter wasn't exactly "laid off" but you are right in that if they want to retain talent they have to pay for it. It's not like these executives are worthless - they are probably very good at their jobs. As unfortunate as it is, right now the parks are operating at very low capacity or not at all - how can they justify keeping everyone? Nobody wanted this.

I am not saying Lasseter was laid off, over the past six months Lasseter has been hiring talent away from Disney to come work for him at Skydance. Disney can't give their talent further incentive to leave by keeping their pay cuts in place.

 

[Disney Bobby]

Well, to be fair, Lasseter wasn't exactly "laid off" but you are right in that if they want to retain talent they have to pay for it. It's not like these executives are worthless - they are probably very good at their jobs. As unfortunate as it is, right now the parks are operating at very low capacity or not at all - how can they justify keeping everyone? Nobody wanted this.

You can justify it by dipping into that $23 billion in cash. Those folks helped you make it. Now be there for them. And they should have already been in court in California to get that park over instead of whining about it on twitter.

But instead, as usual with big corporations, they took it out on the people that could least afford it.

 

[BrianL]

I am not saying Lasseter was laid off, over the past six months Lasseter has been hiring talent away from Disney to come work for him at Skydance. Disney can't give their talent further incentive to leave by keeping their pay cuts in place.

I hadn't really heard he was poaching talent. Makes one wonder, eh? They may be planning something big at Skydance. Interesting.