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Salaried Layoffs "In The Thousands" Coming to Disney Parks & Resorts This Fall???

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  • Salaried Layoffs "In The Thousands" Coming to Disney Parks & Resorts This Fall???

    I'm very, very surprised this topic hasn't come up here yet, but I will try to add a little diversity of thought and topic to this forum with this rumor/news...

    Len Testa, a very well known East Coast-based WDW blogger, or "Social Media Influencer" as the cheesy cubicle drones in Celebration, Florida would call him, has a big scoop on big layoffs coming to Disney's Parks & Resorts division this fall. On another WDW-centric board that offers up some really savvy and intelligent conversation about the business side of Disney theme parks, he dropped this little nugget last week...

    "Word on the street is that layoffs in the thousands will be announced for Parks & Resorts in the next few weeks."

    The conversation on that forum has been fast and furious for a week now, with several other trusted insiders chiming in that they are also hearing about an impending wave of big layoffs coming to Disney's salaried ranks in the Parks Division on both coasts.

    One never wishes to see someone lose a job, but I have thought for several years now that Disney Park's marketing and PR and "Social Media" team was way too bloated. There are apparently hundreds of people who are paid to belch out nothing but mindless pablum online all day, and are happy if two or three bored housewives in Ohio comment back about how "AMAZING!" that new sugar-coated churro looks.

    And that's just one department that has little to no impact on the real business of operating theme parks for paying customers.

    There seems to be a lot of bloat and redundancy within TDA, and probably even more bloat and useless middle management out in Orlando. Anyone know how big the layoffs will be in Anaheim versus Orlando?

  • #2
    "Laid off" or "replaced with foreign workers whom you are first forced to train to replace you".

    Comment


    • #3
      Two things:

      1) If this rumor is true, then while it's sad to see layoffs, they happen every year around this time and quite frankly, are a good thing for a company that is too top-heavy.

      2) Totally agree that the management across the board is bloated as can be, but the issue isn't the marketing department. I completed a professional internship for the marketing department and currently work for an agency that frequently works with Disney P&R (so yes, I'm one of those "cheesy cubicle drones") - they can use every ounce of help they can get when it comes to marketing. The industry requires many, many hands that solely exist "behind-the-scenes" to make even the smallest impression. There are not hundreds of people, however. Maybe less than a hundred or so (not factoring in outside agencies), and "Social Media," as you sarcastically place in quotes, is actually a multi-billion dollar industry that has shown to either make a break a company's marketing campaign...or company.

      Regardless, thanks for sharing and I hope the best for these individuals if this does indeed come true.

      Comment


      • #4
        I don't know which departments are being laid off or what is driving this decision. It could be that certain divisions ramped up for revised DCA efforts like Frozen and DCA Halloween, and their services are no longer needed because they are not integral to Marvel Land, SWL, or any other development still in the works. Or maybe there were certain in-house departments that could be outsourced or staffed by interns, such as social media. But layoffs are a part of life, and they do suck for everyone who gets laid off. But a lot of people who lose jobs due to reduction in workforce have the opportunity to go somewhere new with either a neutral or positive recommendation. Some might be lucky enough to return right away as a contractor instead of an employee. So who knows.

        Comment


        • #5
          As one of my favorite posters on the WDWMagic forum said earlier this week, "Disney's real customer is Wall Street." Whether or not the cuts are warranted, wise, efficient, or help Parks & Resorts better manage WDW and DLR so as to provide better service for their customers, is irrelevant -- Chapek will slash jobs because it looks great to the Street as we head into the next Fiscal Year on October 1. He isn't called "Cheapie Chapek" for nothing, folks. And you can bet your basted turkey legs that the largest number of layoffs will hit the less-bloated areas and the lower-paid people -- not the executive suites.
          "Disneyland is often called a magic kingdom because
          it combines fantasy and history, adventure and learning,
          together with every variety of recreation and fun,
          designed to appeal to everyone."

          - Walt Disney

          "Disneyland is all about turning movies into rides."
          - Michael Eisner

          "It's very symbiotic."
          - Bob Chapek

          Comment


          • #6
            Originally posted by Mr Wiggins View Post
            As one of my favorite posters on the WDWMagic forum said earlier this week, "Disney's real customer is Wall Street." Whether or not the cuts are warranted, wise, efficient, or help Parks & Resorts better manage WDW and DLR so as to provide better service for their customers, is irrelevant -- Chapek will slash jobs because it looks great to the Street as we head into the next Fiscal Year on October 1. He isn't called "Cheapie Chapek" for nothing, folks. And you can bet your basted turkey legs that the largest number of layoffs will hit the less-bloated areas and the lower-paid people -- not the executive suites.
            Sadly this is so true. Chapek has a rep for cheapness, cutting corners on quality wherever possible. It's not hard to imagine that there are likely people on his staff whose job it is to go around the parks looking at everything from top to bottom with the target of "can we cut it?" and "how much can we reduce quality and still get the customers to pay?" I mean food and beverage is but one example where quality is low and prices high, simply because they can get away with it. Cheap reskins of quality rides for "marketing synergy"; you name it, it's fair game.

            Cut, cut, cut. Chapek is all about the cut. Cut quantity, cut quality, cut service, just don't cut prices or his bonus.

            Comment


            • #7
              Originally posted by Mr Wiggins View Post
              As one of my favorite posters on the WDWMagic forum said earlier this week, "Disney's real customer is Wall Street." Whether or not the cuts are warranted, wise, efficient, or help Parks & Resorts better manage WDW and DLR so as to provide better service for their customers, is irrelevant -- Chapek will slash jobs because it looks great to the Street as we head into the next Fiscal Year on October 1. He isn't called "Cheapie Chapek" for nothing, folks. And you can bet your basted turkey legs that the largest number of layoffs will hit the less-bloated areas and the lower-paid people -- not the executive suites.
              It's always amazing ,how stocks goes up ,when there is a Layoff !
              and I sure Iger and Chapek are not going lose any sleep ....
              YES it will be lower paid salaried ranks, in the Parks Division
              Last edited by Eagleman; 09-14-2017, 11:03 PM.
              Soaring like an EAGLE !

              Comment


              • #8
                Originally posted by Golden Zephyr View Post

                Cut, cut, cut. Chapek is all about the cut. Cut quantity, cut quality, cut service, just don't cut prices or his bonus.
                And make sure, no matter what ........IGER get his bonus pocket money

                Soaring like an EAGLE !

                Comment


                • #9
                  Originally posted by 9oldmen View Post
                  "Laid off" or "replaced with foreign workers whom you are first forced to train to replace you".
                  We seen Disney do it before....I would not be surprise ,see them, Do it Again
                  Soaring like an EAGLE !

                  Comment


                  • #10
                    Today's topic: attack Disney management; medium? Layoffs. Certainty? No.

                    - Robert

                    Comment


                    • #11
                      Originally posted by DAILYDISNEYDAD View Post
                      Today's topic: attack Disney management; medium? Layoffs. Certainty? No.

                      - Robert
                      No worries, Robert. Although there will be layoffs, and lots of 'em, none of your fave EVPs will be let go.
                      "Disneyland is often called a magic kingdom because
                      it combines fantasy and history, adventure and learning,
                      together with every variety of recreation and fun,
                      designed to appeal to everyone."

                      - Walt Disney

                      "Disneyland is all about turning movies into rides."
                      - Michael Eisner

                      "It's very symbiotic."
                      - Bob Chapek

                      Comment


                      • #12
                        Originally posted by Mr Wiggins View Post

                        No worries, Robert. Although there will be layoffs, and lots of 'em, none of your fave EVPs will be let go.
                        Wow you know there will be lots of layoffs? What department? I don't have any favorites. I think most who make salaries, if we are talking about reality, are vastly overpaid, and I'm sure they could cut lots of them without guests even noticing. I'd be for increasing front line pay to $20 an hour and cutting 20% of the admin staff. Technology hurts admin jobs more than customer service anyhow. But none of what I just said fits a particular narrative so, sorry.

                        - Robert

                        Comment


                        • #13
                          Originally posted by denyuntilcaught View Post
                          Two things:

                          1) If this rumor is true, then while it's sad to see layoffs, they happen every year around this time and quite frankly, are a good thing for a company that is too top-heavy.

                          2) Totally agree that the management across the board is bloated as can be, but the issue isn't the marketing department. I completed a professional internship for the marketing department and currently work for an agency that frequently works with Disney P&R (so yes, I'm one of those "cheesy cubicle drones") - they can use every ounce of help they can get when it comes to marketing. The industry requires many, many hands that solely exist "behind-the-scenes" to make even the smallest impression. There are not hundreds of people, however. Maybe less than a hundred or so (not factoring in outside agencies), and "Social Media," as you sarcastically place in quotes, is actually a multi-billion dollar industry that has shown to either make a break a company's marketing campaign...or company.

                          Regardless, thanks for sharing and I hope the best for these individuals if this does indeed come true.
                          Not sure where you are seeing layoffs happening "every year" for Disneyland. A scan through Google News archives reveals that "several dozen" Disneyland salaried employees in "Sales and Marketing" were laid off in July, 2016.

                          Then you have to go back to early 2009 to the last truly huge layoff wave, where in the wake of the economic crash and bank panic that ushered in the Great Recession, Disney Parks laid off 1,100 salaried employees, 900 of them were in Orlando, and 200 of them were in Anaheim.

                          If this latest rumor that uses the phrase "thousands" is true, and it's 2,000 salaried folks in Parks & Resorts being laid off, that would be twice as bad as the big layoff wave of '09 as the economy crashed. If it's only 1,000 people laid off; 800 in Orlando and 200 in Anaheim, that would be just as bad as 2009.

                          No other mass wave of layoffs at Disneyland has been reported on in the last 15 years besides those two times in '09 and '16.

                          As for Disney's marketing department, I'm sorry but it is painfully cheesy and wholly ridiculous for the most part. I offer as Example #694 the entirety of the Disney Parks Blog posts.

                          Comment


                          • #14
                            As always, I think the big picture is important here. The entire Walt Disney Company is struggling right now.

                            -ESPN (the financial heart and soul of the company) is still trying to stop the bleeding
                            -The film industry is not doing well - all the big studios had poor years
                            -WDW reportedly had a very poor summer, capped off by a hurricane, and revenue in Anaheim is rumored to be down, as well
                            -Disney Cruise Line is due to take a hit because of the Caribbean hurricanes this summer

                            It's very difficult to find an area of the business that is not facing significant issues. ESPN has already gone through a couple of rounds of major layoffs. There's not much more fat to be trimmed there in the near term. Parks and Resorts (which accounts for 2/3 of TWDC's entire workforce) has to be next. I would guess that Orlando will get hit a lot harder than Anaheim, but when the business isn't doing as well as expected, everybody gets impacted.

                            The one bright spot in the company right now is Shanghai and Paris. Both of those parks are doing pretty well. But, as long as ESPN continues to free fall, there will be a dark cloud over the whole company to one degree or another.

                            Comment


                            • #15
                              Last year alone, Intel laid off 15,600 employees. Microsoft laid off 5,600. IBM, JC Penny, AT&T, etc. all faced reduction in workforce needs for various reasons. These things are not new or unexpected, and they're not Chapek's fault. We don't know which divisions are expected to see the most cuts or what is driving the cuts. However sad they may be for the families who are hit with sudden unemployment, they're par for the course in the corporate world. I've been laid off from a major Oregon law firm before, and what prompted it were 2 things: 1) Change in Oregon law that affected our clients adversely, and 2) Our biggest client left and went to another firm. Maybe Disney is seeing the same thing with their owned entities or contracts. I have no idea. But these things happen across all industries all the time. Ramp up, purge. Ramp up, purge.

                              Comment


                              • #16
                                Originally posted by longbeachaztec View Post
                                As always, I think the big picture is important here. The entire Walt Disney Company is struggling right now.

                                -ESPN (the financial heart and soul of the company) is still trying to stop the bleeding
                                -The film industry is not doing well - all the big studios had poor years
                                -WDW reportedly had a very poor summer, capped off by a hurricane, and revenue in Anaheim is rumored to be down, as well
                                -Disney Cruise Line is due to take a hit because of the Caribbean hurricanes this summer

                                It's very difficult to find an area of the business that is not facing significant issues. ESPN has already gone through a couple of rounds of major layoffs. There's not much more fat to be trimmed there in the near term. Parks and Resorts (which accounts for 2/3 of TWDC's entire workforce) has to be next. I would guess that Orlando will get hit a lot harder than Anaheim, but when the business isn't doing as well as expected, everybody gets impacted.

                                The one bright spot in the company right now is Shanghai and Paris. Both of those parks are doing pretty well. But, as long as ESPN continues to free fall, there will be a dark cloud over the whole company to one degree or another.
                                My stock isn't doing too bad, but compared to my funds, yes, Disney is way down. I'd like to see it back in the mid $110s vs. the high $90s its been languishing in. Still, its done pretty well over the last year all things considered.
                                Matt's 40th Birthday Disneyland Trip. Club 33, Napa Rose, and Adventureland Suite!!! ~~|~~ Katherine's 11th Birthday Dapper Day trip with Club 33 ~~|~~ Matt's Review of the Art of the Craft Tour at Disney's Grand Californian Hotel ~~|~~ My Spring, 2017 Dapper Day Trip Report ~~|~~ My Fall, 2016 Dapper Day and Club33 Trip Report ~~|~~ My Summer, 2016 Walt's LA tour with Bob Gurr and Marty Skylar ~~|~~ My Summer, 2016 Family Firsts Trip Report ~~|~~ Matt's September, 2015 Solo after the Safari Sunrise Trip Report ~~|~~ World Famous Jungle Cruise Safari Sunrise Premium Experience Trip Report ~~|~~ My February, 2015 Dapper Day Trip Report ~~|~~ My October, 2014 Family Vacation with Mickey's Halloween Party ~~|~~ My September, 2014 Dapper Day Trip Report ~~|~~ My August, 2014 Solo Trip Report - 1901/C33 Jazz Club ~~|~~ My June, 2014 Solo Trip Report ~~|~~ My February, 2014 Dapper Day Trip Report ~~|~~ My Epic May, 2013 Trip Report ~~|~~ My October, 2011 Trip Report ~~|~~ My October, 2010 Trip Report

                                Comment


                                • #17
                                  Originally posted by amyuilani View Post
                                  Last year alone, Intel laid off 15,600 employees. Microsoft laid off 5,600. IBM, JC Penny, AT&T, etc. all faced reduction in workforce needs for various reasons. These things are not new or unexpected, and they're not Chapek's fault. We don't know which divisions are expected to see the most cuts or what is driving the cuts. However sad they may be for the families who are hit with sudden unemployment, they're par for the course in the corporate world. I've been laid off from a major Oregon law firm before, and what prompted it were 2 things: 1) Change in Oregon law that affected our clients adversely, and 2) Our biggest client left and went to another firm. Maybe Disney is seeing the same thing with their owned entities or contracts. I have no idea. But these things happen across all industries all the time. Ramp up, purge. Ramp up, purge.
                                  It could have been planned, or it could have been miss managed. We just don't know. When you are in a corporation that size, you live and die by your operating budget. It all comes down to the capital expense spend and operating expense agreed upon ratios for the budget. You start going awry, you need to put them back to where they should be and unfortunately that means cutting jobs. If you as a leader responsible for adherence to the budget don't, you will be the one without a job.
                                  Matt's 40th Birthday Disneyland Trip. Club 33, Napa Rose, and Adventureland Suite!!! ~~|~~ Katherine's 11th Birthday Dapper Day trip with Club 33 ~~|~~ Matt's Review of the Art of the Craft Tour at Disney's Grand Californian Hotel ~~|~~ My Spring, 2017 Dapper Day Trip Report ~~|~~ My Fall, 2016 Dapper Day and Club33 Trip Report ~~|~~ My Summer, 2016 Walt's LA tour with Bob Gurr and Marty Skylar ~~|~~ My Summer, 2016 Family Firsts Trip Report ~~|~~ Matt's September, 2015 Solo after the Safari Sunrise Trip Report ~~|~~ World Famous Jungle Cruise Safari Sunrise Premium Experience Trip Report ~~|~~ My February, 2015 Dapper Day Trip Report ~~|~~ My October, 2014 Family Vacation with Mickey's Halloween Party ~~|~~ My September, 2014 Dapper Day Trip Report ~~|~~ My August, 2014 Solo Trip Report - 1901/C33 Jazz Club ~~|~~ My June, 2014 Solo Trip Report ~~|~~ My February, 2014 Dapper Day Trip Report ~~|~~ My Epic May, 2013 Trip Report ~~|~~ My October, 2011 Trip Report ~~|~~ My October, 2010 Trip Report

                                  Comment


                                  • #18
                                    Isn't Oct 1st the start of the fiscal year for Disney? If so, do you think there will be reductions in other parts of the budget?

                                    Comment


                                    • #19
                                      So, it's penny panic time again. Disney makes it almost a soap opera.
                                      I am old. But still love Disneyland.

                                      Comment


                                      • #20
                                        Originally posted by amyuilani View Post
                                        Last year alone, Intel laid off 15,600 employees. Microsoft laid off 5,600. IBM, JC Penny, AT&T, etc. all faced reduction in workforce needs for various reasons. These things are not new or unexpected, and they're not Chapek's fault. We don't know which divisions are expected to see the most cuts or what is driving the cuts. However sad they may be for the families who are hit with sudden unemployment, they're par for the course in the corporate world. I've been laid off from a major Oregon law firm before, and what prompted it were 2 things: 1) Change in Oregon law that affected our clients adversely, and 2) Our biggest client left and went to another firm. Maybe Disney is seeing the same thing with their owned entities or contracts. I have no idea. But these things happen across all industries all the time. Ramp up, purge. Ramp up, purge.
                                        Also true, the sad thing is this is just the start of the structural reductions in employment that are getting ramped up due to automation and AI.

                                        In the future, the sad thing is there isn't really a plan to put millions of people to work that are being phased out due to AI. Some of the studies are looking at upwards of 30% PERMANENT reduction in employment by 2030 or so.

                                        Comment

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