Looks Like Iger Has a Plan - It Includes Job Cuts

[Miffy]

One of my positions for six years was as a WDW bus driver. The driver giving you the finger is disgusting. Was it a WDW bus or one of the third party buses that were brought in to help out during Covid? If it was a Disney driver, I'm in no way defending them but Disney trained drivers are instructed that once they pull away from the stop, even if it's just a few feet, they're not to stop and pick up a Guest. I broke the rules a number of times and did stop. Go ahead Disney, fire me.

I will add that for a long time there has been a shortage of quality drivers and because they're desperate the in depth training is not what it once was.

AFAIK, it was a regular WDW bus. I've had buses wait for me before when it was obvious I was running to try to get there before they left the stop, but it's not like I expected the driver to and I certainly didn't demean the driver in any way, so I was really shocked. Aside from this one experience, I've never had a bus driver at WDW who was anything less than cordial and many have been far above and beyond that.

 

[DL1WDW2]

It’s beginning to feel like Disney is not Disney anymore .

 

[FastPasser.]

I've never had a bus driver at WDW who was anything less than cordial and many have been far above and beyond that.

Well, keep up that positive attitude and remember that there are bad apples, even at WDW.

If anyone has an experience like this, get the bus number on the back of the bus and remember the time of day.

Unless they've done away with it which I doubt, bus drivers are continuously video taped and management can review the video if they have the bus number and time. I would have gone inside the AKL and ask to speak to a manager. They could contact WDW bus transportation and you likely would have gotten some sort of resolution. BTW, most managers are not aware that the drivers are being watched so tell them that they are.

 

[nkosiek]

It's unfortunate that we park goers are subsidizing the Fox takeover debacle and Disney+ losses by now having to pay for FastPass, paying through the nose for tickets, having no DME & the loss of other perks. It's a pity the stockholders can't pay for these mistakes, it's a weird form of socialism that we are having to stump up instead of them.

That's not what that term means. Also, businesses make decisions all the time to have certain parts help pay for others that may be struggling but that they believe in.

One of the interesting things in the restructuring is making ESPN a separate thing again. I wonder if this is them really separating it to spin it off. Not sure who could/would buy it.

Also, the idea that cutting several thousand jobs will make things better is disturbing. Is there that much waste in the company? If so, were they all hired in the past 24 months or is it Bobby I's fault from the gun? If there isn't that much waste, the excessive demands placed on the remaining employees won't be good longterm as productivity will eventually be hurt.

 

[BroadwayHermione5]

I hate to say it but this was inevitable.


And it’s not just Disney. It’s everywhere. Just look at the shows and movies that were filmed and scrapped. Look at all the other big name companies mass layoffs. I wouldn’t be shocked if it was originally more than 7,000.


The thing a lot of people forget is that the name Disney means a lot more and holds more weight and interest than Comcast. Not saying that Universal is cutting jobs, but it’s possible it’s happening we just don’t know.

I read all that was written about the quarterly earnings statement, and it seems like this was some of the stuff he had to figure out first. Was unfortunate what it was, but unfortunately that’s a lot of the world.

I will say one thing that I’m-I don’t want to say impressed by but I can’t think of another word right now-is how much Mr. D’Amaro is now speaking. I think that theory of Mr. Chapek not letting him talk/take accountability for things was true, and I’m happy Mr. Iger is giving him the platform to speak.

Mr. Iger taking over again was never meant to be a “omg everything is gonna go back to normal hallelujah praise every deity” moment, but to get business back to some semblance of what they knew prior to March 2020. Have we gotten some great steps in the right direction? Yes, but there was always going to continue to be some not so great things. And that affects most if not everyone as a whole, not just Disney.

 

[Robbie Cottam]

When was the Disney Company not a corporation out to make as much profit as possible?

During the Chapek Maneuver

 

[New Mouse]

That's not what that term means. Also, businesses make decisions all the time to have certain parts help pay for others that may be struggling but that they believe in.

One of the interesting things in the restructuring is making ESPN a separate thing again. I wonder if this is them really separating it to spin it off. Not sure who could/would buy it.

Also, the idea that cutting several thousand jobs will make things better is disturbing. Is there that much waste in the company? If so, were they all hired in the past 24 months or is it Bobby I's fault from the gun? If there isn't that much waste, the excessive demands placed on the remaining employees won't be good longterm as productivity will eventually be hurt.

This is why bringing Iger back was laughable and it was humorous to watch people cheer kn the move. He has no actual idea how to solve these things. They didn't start to happen because of Chapek. Chapek barely had time to do anything in his role. At this point if you are voting for the board you are accepting people who have no idea.

There's a statistic out there which says laborers are doing more work than ever before to make up for the workforce gaps, but getting less $ equivalency wise for being more productive.

 

[Miffy]

Well, keep up that positive attitude and remember that there are bad apples, even at WDW.

If anyone has an experience like this, get the bus number on the back of the bus and remember the time of day.

Unless they've done away with it which I doubt, bus drivers are continuously video taped and management can review the video if they have the bus number and time. I would have gone inside the AKL and ask to speak to a manager. They could contact WDW bus transportation and you likely would have gotten some sort of resolution. BTW, most managers are not aware that the drivers are being watched so tell them that they are.

I didn't have the bus number--I wouldn't've known where to look for it--but I did have the exact time of day this happened (I made an immediate note of this incident on my phone, sending an email to myself) and of course the location. I wrote to Disney after I got home and got a very unsatisfying response, as though I'd complained that a bus driver didn't pick me up, not at all addressing the actual issue.

Yes, I could have gone back to the front desk and spoken to a manger--I thought of doing it--but I decided that I didn't want to waste my vacation time doing so. We had plans. I mean, it's Disney, of course we had plans.

I didn't want resolution. I wanted the bus driver transferred to a non-public-facing job. I'm sure a heckuva lot of kids saw her do this.

 

[FastPasser.]

I didn't want resolution. I wanted the bus driver transferred to a non-public-facing job. I'm sure a heckuva lot of kids saw her do this.

Even when I was driving there were a lot of drivers that were not qualified to be a WDW driver. They were scraping the barrel even then.

If the incident was serious enough the driver probably would or should have been fired.

I don't know if they're able to track down a driver with just a time and location. Drivers don't have the same bus all day so usually there are several drivers that have had a particular bus. If a driver has an overtime shift they could have up to 3 different buses. And drivers don't repeat routes so it's not the same driver going back and forth to a resort.

 

[MiraclesTakeTime]

I don't find this too alarming. It's always unfortunate when jobs are cut and people have to seek unemployment elsewhere, but restructuring tends to include cutting of excess and focusing on core needs for more potent changes, and I hope this means improvement in overall quality of the parks and guest experience.

 

[WEDcryoHEAD]

Businesses will never let their profit margin suffer. So in an economy such as it is, they will cut jobs / payroll, to keep the profit margin. Right or wrong, its just the facts

 

[Miffy]

Even when I was driving there were a lot of drivers that were not qualified to be a WDW driver. They were scraping the barrel even then.

If the incident was serious enough the driver probably would or should have been fired.

I don't know if they're able to track down a driver with just a time and location. Drivers don't have the same bus all day so usually there are several drivers that have had a particular bus. If a driver has an overtime shift they could have up to 3 different buses. And drivers don't repeat routes so it's not the same driver going back and forth to a resort.

I hadn't thought of that, but you're absolutely right. If I'd thought about it and knew where to look, I would've made note of the bus number.

But, as I said, this is one isolated experience of years of going to WDW and I'm assuming it would never happen again.

 

[BrightMorningStar]

I don't find this too alarming. It's always unfortunate when jobs are cut and people have to seek unemployment elsewhere, but restructuring tends to include cutting of excess and focusing on core needs for more potent changes, and I hope this means improvement in overall quality of the parks and guest experience.

It is not meant to be alarming. Just news.

Job cuts are happening everywhere and most likely will continue. Economists are saying things will grow worse over the year. Businesses will do what they need to ensure the guys at the top get their money and they keep doors open. Some have laid off much higher numbers.

 

[TLSnell1981]

It’s beginning to feel like Disney is not Disney anymore .

It's been in a slow decline for quite a long time.

 

[drenalin'junkie]

It'd be different if dividends didn't come in 25% over projected and I haven't seen any executive cost cuts. In the end, as ways, the working class is affected disproportionately.

 

[TLSnell1981]

It'd be different if dividends didn't come in 25% over projected and I haven't seen any executive cost cuts. In the end, as ways, the working class is affected disproportionately.

They wont have the money invested if they aren't making a profit.

Disney has other problems that they've created all on their own. They are losing customers across the board.

 

[Disneytrippin']

https://www.zerohedge.com/markets/d...st-savings-after-disappointing-streaming-subs

Disney Stock Soars On Job Cuts, Cost Savings After Disappointing Streaming Subs​

Out of the gate, Disney looked good with a top- and bottom-line beat:

• 1Q Rev. $23.51B, Est. $23.39B
• 1Q Adj EPS 99c, Est. 74c

With the Parks segment revenues beating expectations ($8.74bn vs $8.08bn est).


However, Disney's streaming (direct-to-consumer) business lost $1.1 billion in the quarter (less than the previous quarter, when it lost $1.5 billion) but all the segments disappointed in terms of subscribers, with overall streaming growth largely stalled domestically. Disney+ had just 200,000 new customers in the US and Canada last quarter. ESPN+ and Hulu, which are US-focused services, saw just a 2% increase in their subscribers.

• Disney 1Q Disney+ Subscribers 161.8M, Est. 164M
• 1Q ESPN+ Subscribers 24.9M, Est. 25.7M
• 1Q Total Hulu Subscribers 48.0M, Est. 49M
• 1Q Hulu & Live TV Subscribers 4.5M, Est. 4.6M

Disney+ posted a rare loss of subscribers in the quarter, shedding more than two million customers compared to the previous quarter. Most of the decline came from Hotstar, which recently lost the broadcast rights to Indian cricket. Disney+ now has 162 million subscribers.



The initial gains in the stock after hours evaporated on the disappointing sub growth (or shrinkage), but then came the conference call...

CEO Bob Iger says “we are embarking on a significant transformation” and said he plans “to reshape our company around creativity, while reducing expenses.”

This “will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders.”

Iger says the company will now have three core business segments:

• Disney Entertainment,
• ESPN, and
• Disney Parks Experiences and Products.

But the big news is that Iger announced Disney would cut 7,000 jobs in the restructuring with plans to seek $5.5 billion in cost savings.

The reductions include lower spending on programming and $2.5 billion in non-content related cuts.

About $1 billion of the savings are already underway, Iger said on a conference call with investors Wednesday.

The reorganization is intended to improve profit margins, Iger said, and represents his third major transformation of the business following efforts to beef up its film franchises through acquisitions and the development of its online business.

Additionally, Iger maintains Disney+ profitability goal for end of fiscal year 2024.

Iger says the company will ask the board to reinstate the dividend by the end of the calendar year, saying the impacts from the pandemic are fading.

He says Disney’s cost-cutting initiatives will make this possible.

All of which sent the stock soaring...



Finally, we note that Disney will no longer provide long-term subscriber guidance “to move beyond short-term quarterly metrics” and focus on profitability, Iger says.

Disney needs to remember who the majority of thier base is. People have quit going to Disney and have cancelled Disney+ because of various reasons one being its no longer safe for kids.

 

[KrazeeK120]

Disney needs to remember who the majority of thier base is. People have quit going to Disney and have cancelled Disney+ because of various reasons one being its no longer safe for kids.

Say what?

The parks are as safe as a large public place can be…I haven’t heard of any safety incidents there.

And yes, there’s content on D+ which most would agree is not suitable for young children, but that’s true of virtually any streaming service/cable package.

I don’t think Disney has any safety issues…

 

[Disneytrippin']

Say what?

The parks are as safe as a large public place can be…I haven’t heard of any safety incidents there.

And yes, there’s content on D+ which most would agree is not suitable for young children, but that’s true of virtually any streaming service/cable package.

I don’t think Disney has any safety issues…

I am referring to what their malleable minds are exposed to. There is a greater audience that is offended by some of the things Disney has changed. I was not referring to actual physical safety. This is fact. People have been very vocal about this.
But, don't forget the issues not to long with cast members involvement in a child sex ring. Just saying.

 

[Bruggok]

We might be unnecessarily worked up about Disney’s layoff. 7k out of 220k+ is 3.x%? There are probably 7k employees who are not frontline/direct contributors, I.e. do not produce products/services, and no reports and MS project updates don’t count.