'Tis the season for.....LAYOFFS!!!!

[lockedoutlogic]

Disney offers buyouts to 600 executives, more than half in Orlando
Jason Garcia | Sentinel Staff Writer
3:44 PM EST, January 21, 2009
Walt Disney Co. said today it is offering buyouts to 600 executives in its domestic theme parks and resorts, including 313 managers at Disney World in Orlando, to reduce costs in the face of the ongoing nationwide recession.

The 600 executives, all above the level of director, have until Feb. 6 to decide if they want to take the offered buyout. At that point, the company may consider layoffs as well.

Disney did not say how many jobs it planned to eliminate.

"Given the continued uncertainty of the economic environment, we must manage our business even more productively," Leslie Goodman, executive vice president of worldwide public affairs in Disney's parks and resorts division, said in a written statement released this afternoon.
She also noted that "the parks and resorts division is in the process of implementing a number of initiatives to contain costs and maximize efficiency."

More to come.


From the Otown Sentinel.....

Just like 2002...let the games begin

[fielin]

I'm sorry for the people who are going to lose their jobs, and hope the compensations are worth taking the initiative.

I know I am not supposed to think this way, and I know how important a CEO is, and that they are responsible for thousands of people (and the shareholder's benefits) and yadda yadda yadda.

I am in the high management and I am not one of those manager-bashing types but...

I cannot help reading about this nearly 14 million dollars bonus Iger got, and ask myself how many jobs this amount would have saved.

Again, I know this is just not the same budget, and that this money is not that money, but still. ..

[TheRustyScupper]

1) This should give you and idea of a bloated management corps.
2) Laying off 313 and these are Director and above!
3) I saw an org chart once - over 500 director and above.
4) Maybe this will force them to to lean.
5) OK, so maybe it won't.
6) I Wonder the amount of hourly that are going to go bye-bye?
7) It is still over 5,000?

[Ed]

2) Laying off 313 and these are Director and above!

Minor correction; they're offering buyouts to 600 Directors and above throughout the entire company, 313 of whom are at WDW. They're not saying those people will be laid off.

Of course, if many of those folks decline the "buyout" that the company offers, THEN there may be layoffs among those ranks, as well as lower-ranking cast members.

I don't think this comes as a surprise to anyone. Given the overall state of the economy, you know that "disposable income" is way down for many folks. That translates to fewer vacations and associated spending, and that definitely impacts Disney's bottom line.

[Tekneek]

313 at a Director level or higher just at WDW? Maybe I don't understand just how large the Disney organization is, but that seems like a lot to have (not to mention how this is probably a minority of the total).

[Ed]

313 at a Director level or higher just at WDW? Maybe I don't understand just how large the Disney organization is, but that seems like a lot to have (not to mention how this is probably a minority of the total).

Well, to give you some idea, the Florida operation alone employs over 60,000 people. According to CNN, in 2007 the overall company had 133,000 employees.

[DizneyRox]

I cannot help reading about this nearly 14 million dollars bonus Iger got, and ask myself how many jobs this amount would have saved.

Again, I know this is just not the same budget, and that this money is not that money, but still. ..

It's sickening really... But that's the business world these days...

[lockedoutlogic]

They did the exact same thing in 2002...

they will push the voluntary separation hard....they don't tend to like to actually have to lay people off by force....

As far as hourly....you most likely won't see any layoffs.....they will just board the doors to casting....which i'm sure happened months ago....and allow the normal, ridiculous level of attrition to trim down the work force by a few thousand....that will only take less than a year....

[Speedy1998]

I cannot help reading about this nearly 14 million dollars bonus Iger got, and ask myself how many jobs this amount would have saved.

. ..

Seeing as this article is talking about director level and above, I doubt 14 million would go as far as you think.

Now if you start talking about the $8-$10 per hour CMs that is different. $14,000,000 would go a long way to keeping them employeed.

[Ian]

1) This should give you and idea of a bloated management corps.
2) Laying off 313 and these are Director and above!
3) I saw an org chart once - over 500 director and above.
4) Maybe this will force them to to lean.
5) OK, so maybe it won't.
6) I Wonder the amount of hourly that are going to go bye-bye?
7) It is still over 5,000?

That was my thought, too. And remember, these are only the folks who got offered the package. There are more out there.

90 directors at Disneyland? I mean WDW you can almost understand ... it's really big ... but I can't possibly imagine what 90 people would find to "direct" at Disneyland.

As bad as I feel for the folks who will end up out of work (although I'm sure they'll be well compensated for it), I can't help but think this might end up as a good thing for WDW. From what I hear, the ridiculously top-heavy management bureaucracy there really stifles a lot of potential positive change.

[lockedoutlogic]

That was my thought, too. And remember, these are only the folks who got offered the package. There are more out there.

90 directors at Disneyland? I mean WDW you can almost understand ... it's really big ... but I can't possibly imagine what 90 people would find to "direct" at Disneyland.

As bad as I feel for the folks who will end up out of work (although I'm sure they'll be well compensated for it), I can't help but think this might end up as a good thing for WDW. From what I hear, the ridiculously top-heavy management bureaucracy there really stifles a lot of potential positive change.

You guys are both correct that the management is completely bloated.....

But now they're "trimming their belts"....

In the next boom period (expect it to start in about 2012)...they will then begin to rehire management and bloat the ranks again.....as they did between 94-2000 and 2004-2008....

like real estate - Disney's thinking is completely cyclical

[Ian]

It's an unfortunate plague of American business these days ... my last company was outrageously top heavy. We literally had one member of management (i.e. manager, director, vp) for every six employees. It was just incredible.

But it's kingdom building (read The Fiefdom Symdrome) ... everyone wants to put more layers of management underneath them to make themselves appear to be more important. It also can help bump you up the food chain.

It's the sign of a seriously dysfunctional corporation, unfortunately. My last company was at the brink of disaster and would have gone under had they not gotten access to government bailout money.

[lockedoutlogic]

It's the sign of a seriously dysfunctional corporation, unfortunately. My last company was at the brink of disaster and would have gone under had they not gotten access to government bailout money.

Let 'em burn.....

The "bailout" money has been completely misused already....as everyone with an IQ over 100 should have expected.....

secure the debt....then sell off the property through bankruptcy and keep it as profit....

[Ian]

Yeah, we've certainly gotten a lot for our trillion dollars, huh?

[BMan62]

Let 'em burn.....

The "bailout" money has been completely misused already....as everyone with an IQ over 100 should have expected.....

secure the debt....then sell off the property through bankruptcy and keep it as profit....

What could you expect from a 2 or 3 page 'plan' with no mention of accountability?

[lockedoutlogic]

What could you expect from a 2 or 3 page 'plan' with no mention of accountability?

I expected the same mindless stupidity and cronyism that has gone rampant for a decade....

hit the bullseye on that one....

[John]

I think we are about done here - we've wandered way off track from Disney News, Rumours and Imagineering at this point.

Thanks to everyone for participating - good night gracie!