Disney Parks laying off 28,000 cast members

[Eric Smith]

The only way I see them having enough takers is to make the price "reasonable", but I give that a 1% chance. Otherwise, I see them increasing the price to limit the number of takers to which I could see them then not getting enough bookings and cancel. A slippery slope.

They've handled this exact problem before, I see no reason to doubt that they would be able to price things appropriately in the future.

 

[Eric Smith]

Not sure if this has been brought up here. I've noted on numerous occasions over the last couple weeks that many other mass media companies (and some amusement park operators) like TWDC have held firm on executive pay reductions they instituted earlier this year. TWDC, as a reminder, reportedly reinstated 100% executive pay in August. That's not news, but interestingly enough, the Oriental Land Company (which owns and operates Tokyo Disney Resort under a licensing agreement) announced today that they were further lowering executive pay. By most accounts, TDR's reopening has gone very well (they're already doing parades and fireworks there and it appears they're increasing capacity) but even they don't seem to see the situation changing anytime soon. Kudos to them.

I think that shows the difference in the corporate mentality in Japan vs the US. There's the famous example of Satoru Iwata volunteering to take a pay cut when the Wii U underperformed and Nintendo ended up in a bad financial spot because of it.

 

[Lewisc]

I’m not sure. But the union did eventually reach an agreement with Disney. Disney (eventually) chose to lay off nearly everyone anyways. Seems like retaliation to me, for the initial disagreement.

JMO The union dispute gave Disney cover. Disney could blame the union for a few of the closed shows. Disney lost the union excuse and did what they were planning to do.

 

[New Mouse]

I think that shows the difference in the corporate mentality in Japan vs the US. There's the famous example of Satoru Iwata volunteering to take a pay cut when the Wii U underperformed and Nintendo ended up in a bad financial spot because of it.

Its also an understanding that cutting an executives pay from $300k to $200k isnt going to put them on the streets, but letting a front line cast member go, likely is going to put their life turmoil. For a company that "cares" they should absolutely be thinking about the non Disney effect of their decisions.

 

[BadPinkTink]

Its also an understanding that cutting an executives pay from $300k to $200k isnt going to put them on the streets, but letting a front line cast member go, likely is going to put their life turmoil. For a company that "cares" they should absolutely be thinking about the non Disney effect of their decisions.

When you run a business, whether its the Mom & Pop place down the street, or a big corporation like Disney, the survival of the BUSINESS is the top priority. A business is not a charity, and to run a business you need to be ruthless and be able to make business and financial decisions without emotion. Right now every business is in survival mode, and they can not afford to think about the emotional effect of their decisions.

I think many people are having their Disney feel good bubble burst, this is business folks, and you all just got sucked into the guest PR image spin.

 

[hertamaniac]

Here is a local based cappella group (many of which you could recognize from Voices of Liberty) that are likely effected by the layoffs.

https://voctave.net/

 

[Eric Smith]

Its also an understanding that cutting an executives pay from $300k to $200k isnt going to put them on the streets, but letting a front line cast member go, likely is going to put their life turmoil. For a company that "cares" they should absolutely be thinking about the non Disney effect of their decisions.

The reality of the situation is that if one company cuts executive pay and other companies do not, then those executives will migrate to other companies. I think Disney is trying to keep their talent with that move. It's a bad look for sure.

 

[BrianL]

Its also an understanding that cutting an executives pay from $300k to $200k isnt going to put them on the streets, but letting a front line cast member go, likely is going to put their life turmoil. For a company that "cares" they should absolutely be thinking about the non Disney effect of their decisions.

But how many jobs can that $100K save? Like two or three? Even spread across all executives it's just not enough. I can't speak for Disney, but a lot of executives don't even make that much. Sure, they may make six figures, but they also live in a house commensurate with that - they still have a mortgage to pay. I mean, yes, if they could save everyone's jobs, then I'd love it, but with nothing for some of the front line cast members to do how can they justify paying them. The executives (the ones that weren't laid off) do work too - they are needed to fulfill their function. It's just not that simple - and granted I don't have a good solution - but in the current climate they don't have a lot of options. I do not think Disney wanted this.

 

[hertamaniac]

The reality of the situation is that if one company cuts executive pay and other companies do not, then those executives will migrate to other companies. I think Disney is trying to keep their talent with that move. It's a bad look for sure.

This is where I would look at that executive "jumping ship" to chase >$ and question his/her allegiance to the new company. Will this employee be in continual hop-mode leaving me to scour a replacement? It's a major red flag when looking to hire C-level resources.

I've seen companies (and worked for one) that amidst an industry downturn offered our executive lucrative stock options to keep them grounded; some left and some stayed.

 

[CP3uhoh]

Just saw a headline that 11,000+ union workers will be laid DEC 31....is that part of the 28k or an additional 11,000?

 

[rteetz]

Just saw a headline that 11,000+ union workers will be laid DEC 31....is that part of the 28k or an additional 11,000?

Should be part of it. Unions had to negotiate and took longer to figure out who was being laid off.

 

[CP3uhoh]

Should be part of it. Unions had to negotiate and took longer to figure out who was being laid off.

I think you’re right, I don’t see how they could have 11k MORE and be operating anywhere let alone be ready to open on 3 weeks notice.

 

[rteetz]

https://twitter.com/x/status/1322160076447252483

 

[rteetz]

https://blogmickey.com/2020/10/disn...definite-closures-of-walt-disney-world-shows/

 

[yulilin3]

Here is a local based cappella group (many of which you could recognize from Voices of Liberty) that are likely effected by the layoffs.

https://voctave.net/

I know for a fact that Sarah Whittemore is part of the layoff, she posted on her page

 

[dlavender]

https://disneyparks.disney.go.com/blog/2020/10/update-on-entertainment-at-walt-disney-world-resort/
Ugh, this statement makes it worse, somehow....

 

[rteetz]

https://disneyparks.disney.go.com/blog/2020/10/update-on-entertainment-at-walt-disney-world-resort/
Ugh, this statement makes it worse, somehow....

Disney’s long way of saying hey look at this amazing basic stuff we are doing! Now please stop emailing us...

 

[tlmadden73]

https://disneyparks.disney.go.com/blog/2020/10/update-on-entertainment-at-walt-disney-world-resort/
Ugh, this statement makes it worse, somehow....

It just emphasizes just how little "live entertainment" they have right now. The cavalcades seem like a great solution though. Hopefully they come up with some other creative solutions.

I'm sure (like myself) a lot of people have 2021 trips booked with hopes of things being at least a little closer to normal. This dumps a bucket of cold water on that hope. I wonder if, despite the discounts on resorts, people are going to cancel their early 2021 trips and defer them to later (yet again).

With growing COVID cases all over, I doubt Disney will really do much to encourage more people to come (like ticket discounts). But man ..do the parks "feel" like less value for your dollar. We'll see if I feel that way when I am actually there. I hear great things for people who HAVE gone.

 

[mattpeto]

It just emphasizes just how little "live entertainment" they have right now. The cavalcades seem like a great solution though. Hopefully they come up with some other creative solutions.

I'm sure (like myself) a lot of people have 2021 trips booked with hopes of things being at least a little closer to normal. This dumps a bucket of cold water on that hope. I wonder if, despite the discounts on resorts, people are going to cancel their early 2021 trips and defer them to later (yet again).

With growing COVID cases all over, I doubt Disney will really do much to encourage more people to come (like ticket discounts). But man ..do the parks "feel" like less value for your dollar. We'll see if I feel that way when I am actually there. I hear great things for people who HAVE gone.

It's always been about the vaccine. DW layoffs is an indication that they believe we are still pretty far out from normalcy.

 

[OKWDVCMagic]

Disney just posted a update on Changes in Entertainment at WDW

https://disneyparks.disney.go.com/b...EZ8-OcV-HQuJFFtydxM35e_bzK4wwC-M2ZVpuKBE_5NA8