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Disney revokes hundreds of workers' keys to the Kingdom in big layoffs
http://www.walletpop.com/blog/2009/03/27/disney-revokes-hundreds-of-workers-keys-to-the-kingdom-in-b ^ | 3/27/2009 | Jason Cochran

Posted on 04/01/2009 1:34:56 PM PDT by longtermmemmory

When it comes to the inner workings of its parks, the Disney empire can be as secretive as the Kremlin. But one thing the company is admitting is that it's firing lots of people at its theme parks. It's not discussing the exact number of dismissals except to say it's restructuring and aiming for efficiency, but by adding up reports, we can approach an understanding of the severity of the situation.

Earlier this winter, voluntary buyouts were offered to 619 executives, and 50 took the offer. One unattributed person told the Orlando Sentinel that the cuts numbered around 450, while other reports estimate closer to 800.

But if you listen to the word on the street, the figure is much higher. One former employee called it "a massacre." The situation is big news in the theme park and entertainment world. And in Florida, where Disney employs an astounding 62,000 people.

Who's not losing their jobs?

Union workers, who are guaranteed hours, job security, and wage increases. Part-time workers, too, are benefiting. Disney appears to be stealing a page from the Wal-Mart playbook, and even though it's cutting hundreds of full-timers and salaried workers, yesterday it hired 27 part-timers, who won't get overtime or full benefits. That saves money.

People who visit the Disney parks won't notice the lines being particularly short these days. They're just as long as they ever were. The problem, and a big source of the company's woes, is that people aren't spending nearly as much once they get through the gates. It seems that the company's high ticket prices have come to haunt it. Guests will pay what it takes to see the legendary resorts ($75 for a day is the going rate for one park) but they balance that by cutting back on souvenirs, food, and hotel rooms, and those are big profit-making sectors for the company.

So you're still going to wait as long as ever to ride Soarin'. But there will be fewer people running the park. Disney's fiscal second quarter ends Saturday, which is a big reason for the sudden welter of firings. The company's profits tumbled by 32% in the first quarter, so by cutting costs like this, it hopes to report less grim news for the third one.

I can't really fault Disney for this. It's always had a surfeit of employees, and part of the parks' appeal is wondering just how the company manages to do it all. I just hope that the curtailed payroll doesn't spill over to diminished customer service. Privately, employees (which Disney calls "cast members") grouse about crippling back-office bureaucracy and the herculean effort required to do something as simple as restock a popular item in a gift shop. So if this staff cull makes the Disney experience less fun in the short term, hopefully it will result in a tighter ship later on.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: disney; ecconomy; jobs; layoff; obamasfault
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Interestingly the left wingers seem to be cheering the middle managment and lower end people losing their jobs. In all seriousness these seems to be a corporation dealing with the new and INCREASED EXPENSE of having employees in the age of obamanomics. IOW socialism if not communism.

Micky Mouse apparently does not like commie policies in the kingdom's wallet.

1 posted on 04/01/2009 1:34:56 PM PDT by longtermmemmory
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To: All

some other sources describe the layoffs as a bloodbath and a massacre.


2 posted on 04/01/2009 1:35:32 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory

we are about to have millions of more people working part time and temporary jobs and millions more than that unemployed


3 posted on 04/01/2009 1:37:59 PM PDT by GeronL (http://tyrannysentinel.blogspot.com)
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To: longtermmemmory

Throw in the housing market and loss of tourism in Florida; it’s not gonna be pretty.


4 posted on 04/01/2009 1:39:15 PM PDT by BGHater (Tyranny is always better organised than freedom)
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To: longtermmemmory

We decided against going to Disney because the price for admission is insane. Chose other, local alternatives.


5 posted on 04/01/2009 1:39:26 PM PDT by paul544 (3D-Joy OH Boy!!!)
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To: longtermmemmory

Layoffs came as a last resort?


6 posted on 04/01/2009 1:39:31 PM PDT by N. Theknow (Kennedys: Can't fly, can't ski, can't drive, can't skipper a boat, but they know what's best.)
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To: longtermmemmory

If a company that employs 62,000 people in Florida cuts 620 people in florida, that’s 1% of their employees. Hardly a “bloodbath”, except that disney employees aren’t used to getting laid off.

It’s like IBM employees in the early 1990s. They couldn’t believe anybody would ever get laid off.


7 posted on 04/01/2009 1:41:26 PM PDT by CharlesWayneCT
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To: GeronL

notice most of the lay offs are for middle class people.

Essentially the obama ecconomy is eliminating the middle class.

we are going to a politician and serf society. Those are the two americas of the rats.


8 posted on 04/01/2009 1:44:36 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory
While layoffs are unpleasant, equating them to a 'massacre' is a bit goofy.
9 posted on 04/01/2009 1:44:44 PM PDT by posterchild (Endowed by my Creator with certain unalienable rights.)
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To: longtermmemmory

I guess Minnie will be working the strip clubs soon.............................


10 posted on 04/01/2009 1:45:57 PM PDT by Red Badger (If Keynesian economics worked, Zimbabwe would be a superpower.......................)
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To: CharlesWayneCT

I think the 620 were people who recieved the “go away” option. The ones being fired now are those who have no “go away” offer.

I suspect disney is ditching their legacy managers before the obama ecconomy makes them cost more money to the company.

also the 62000 includes SEASONAL workers go come and go with the flow of business.

Does anyone know if a certain number of layoffs require reporting to the state unemployment office? (so much for Governor Rino’s stimulus check)


11 posted on 04/01/2009 1:47:40 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Red Badger

I’m sure that article will be coming soon, though we probably won’t read about the other side of it, that if it is true then there must be a lot of Mickeys flush with cash to tip all these newly minted Minnie strippers.


12 posted on 04/01/2009 1:48:29 PM PDT by posterchild (Endowed by my Creator with certain unalienable rights.)
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To: Red Badger

you have not seen the new plans for the revamped Pleasure Island. (Disney branded dancing pole? oh my!)


13 posted on 04/01/2009 1:48:33 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory

Just spent a week at WDW and you couldn’t tell that there was any problems there. The place was packed. It was spring break. All in all we had a great time anyway.

When we go back in May, I am hoping that it will be a mite bit less crowded.

ACtually the cost of admission isn’t bad if you get multiple day passes. We buy annual passes and just don’t worry about it. But, then again, we go 4 times a year, and stop in a park whenever we are in the area.


14 posted on 04/01/2009 1:48:43 PM PDT by Conan the Librarian (The Best in Life is to crush my enemies, see them driven before me, and the Dewey Decimal System)
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To: Red Badger
I guess Minnie will be working the strip clubs soon.............................

When she first floated this idea past Mickey he said it was f'n goofy and Minnie said never again.

15 posted on 04/01/2009 1:49:16 PM PDT by N. Theknow (Kennedys: Can't fly, can't ski, can't drive, can't skipper a boat, but they know what's best.)
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To: Conan the Librarian

BTW does everyone know that for DECADES Disney has had a policy that EVERY SINGLE PERSON who has served in the military gets a 5 day pass once in their life?

AND

Disney has a seperate resort hotel for the military and their families ON PROPERTY?

I think this is just a company using, correctly, obama as the reason to eliminate pork. NOBODY wants to be the next GM.


16 posted on 04/01/2009 1:51:07 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: paul544

They are running specials right now, one up side to the low tourism. I am running though if the parks will look as pristine as they usually do.


17 posted on 04/01/2009 1:52:38 PM PDT by ThisLittleLightofMine
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To: ThisLittleLightofMine

does a middle manager trim the topiaries?


18 posted on 04/01/2009 1:53:51 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory

The super wealthy support Obama. The poor support Obama. The middle class must become poor. President for life?


19 posted on 04/01/2009 1:54:54 PM PDT by GeronL (http://tyrannysentinel.blogspot.com)
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To: longtermmemmory

We went to Disney World about a month ago. Our tickets were bought off eBay and were a good deal. We ate out only one meal a day while on vacation and stayed pretty frugal.

Our daughter wanted a balloon, a neat Mickey Mouse ballon inside a clear one.

It was $10.

There are places where people will revolt on prices, and $10 for a silly balloon is one of them. There’s a tipping point and ridiculous prices for simple things really irritate patrons, making them more conscious of other ridiculous prices.


20 posted on 04/01/2009 1:55:03 PM PDT by Kieri (The Conservatrarian)
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