Layoffs Accelerate at WDW

[Ed]

Hundreds lose jobs as Disney World layoffs accelerate

Disney, which is Central Florida's largest employer with about 62,000 "cast members," refused to say Thursday how many jobs it has eliminated.

Jason Garcia

Sentinel Staff Writer

11:58 AM EDT, March 26, 2009

Walt Disney World has stepped up layoffs this week, as the company prepares to close out its fiscal second quarter this week.

Disney, which is Central Florida's largest employer with about 62,000 "cast members," refused to say Thursday how many jobs it has eliminated. But one person familiar with some details of the cuts said he was given an estimate of 450.

Employees said the cuts, which predominantly target salaried workers, have occurred across the resort's back-office functions, including entertainment, merchandise, finance, transportation, training, emergency management and theme-park operations.

"It's property-wide," said Donna-Lynne Dalton, business agent for the Teamsters Local 385 union, which represents characters, laundry workers, parking attendants and ranch hands. She noted, however, that the job cuts have not affected unionized employees.

"I was told that they are going to be walking people out through Friday," she said.

One former employee, who said he was laid off Wednesday after more than 10 years at Disney World, said he was personally familiar with about two-dozen others who lost their jobs. Another worker laid off this week said he personally knew about 20 others whose jobs were eliminated.

"We're not talking about one or two people. We're talking about 30 or 40 people in some areas," one of the laid-off employees said. Both spoke on the condition they not be identified, for fear of losing their severance pay.

Disney announced in February that it would begin slashing jobs as part of a corporate restructuring in which it is combining functions between Disney World and Disneyland in Anaheim, Calif.

"We think these changes are essential to maintaining our leadership position in family tourism, and they reflect today's economic realities," Disney spokesman Mike Griffin said Thursday.

The job cuts follow voluntary buyouts offered to more than 600 executives across its domestic parks. Disney said approximately 50 people accepted the buyouts.

The layoffs and buyouts are part of deep cost cuts imposed across the Walt Disney Co., as the Burbank, Calif., media-and-entertainment giant suffers through the worst recession in decades. Company profits fell by 32 percent during the first quarter, which ended Dec. 27.

Disney's theme parks are particularly vulnerable to downturns in consumer spending. The company has attempted to keep attendance afloat with deep discounts that are eroding profit margins.

Among those who have already departed or are scheduled to leave by the end of the month: Disney Cruise Line President Tom McAlpin, top chef and restaurant planner Dieter Hannig, and veteran spokesman Bill Warren.

The company has said it is trying to target cost cuts at its theme parks so that they do not hurt guests' experience. But one laid-off employee said the back-office cuts have been so deep that it will affect the employees who deal directly with guests.

"The support from backstage to cast members affects that guest experience," he said. "They affect the cast member, the cast member's attitude, the cast member's ability to do their job."

Disney World has been laying off workers since last month. But former employees say the cuts accelerated this week, and have been so widespread that one former employee described it as "a massacre."

The cuts could be timed to coincide with the end of the Disney Co.'s fiscal second quarter, which concludes Saturday. Disney will report its second-quarter earnings May 5.

[DizneyRox]

450 out of 62,000 is far short of a massacre...

[murphy1]

I'll add Disney people to my list to pray for. My Aunt is pretty safe, she has been at the hotel for almost 25 years now. Florida is one of the worst places in a recession, I had to leave a few years ago myself. Hang in there everyone!

[lockedoutlogic]

450 out of 62,000 is far short of a massacre...

EXACTLY what i was thinking.....DEAD ON!!!

(this agreeing with people on this board is starting to get me concerned )

[John]

Folks - I know people who have been layed off and the roles they filled. They can say what they want, but you will feel the effect of this. And it's not like they let go people who had only been there a few months or years - it's people who had worked hard for years behind the scenes to make you experience more enjoyable...

So, lets lay off the smart remarks. This hurts all of us - even if you don't see it as a massacre.

I also get the feeling this is only the beginning of things to come.

[GothMickey]

450 out of 62,000 is far short of a massacre...

I'll agree. Remember, that total is mostly executives and managers who postions are being eliminated due to the restructuring, and their secretaries. I haven't heard of front line CMs yet, but, they are on edge from what I read and heard. My other post said CMs were getting it too. That was incorrect at this point.

[Ed]

Folks - I know people who have been layed off and the roles they filled. They can say what they want, but you will feel the effect of this. And it's not like they let go people who had only been there a few months or years - it's people who had worked hard for years behind the scenes to make your experience more enjoyable...

So, lets lay off the smart remarks. This hurts all of us - even if you don't see it as a massacre.

I also get the feeling this is only the beginning of things to come.

John, from what I'm hearing, you're absolutely right; this is just the preface.

And I couldn't agree more about the remarks. I'll ask our readers to think twice before posting such comments. If YOU were one of those 450 or so, it WOULD be a big deal and a heartbreaking situation to you and your family.

[murphy1]

Exactly!! Thanks guys! I have been laid off twice in my life and it stinks. Everyone at that company makes a difference and most people work there b/c they love it, not so much for the pay. I hope things get better SOON everywhere!

[SBETigg]

I'm really sad to hear it. I'll be thinking of the people who lost jobs and their families.

[LauraleeH]

This is horrible, Florida is really feeling it now...it's not good at all. I still can't find a job. You just can't find anything here...it's horrible

[DizneyFreak2002]

I heard one of the names that keeps getting dropped was also laid off... Phil Holmes??? I feel bad for all those people who lost their jobs today, no matter what the situation.. I was laid off last May, so I know what they must be going through... I hated my job, so I was kind of glad to be out of there, but, the idea of not having a job, not king what my future was going to hold, played with my mind big time... I hope all turns out well for these people..

[Bethis26fan]

Those poor people.

[JPL]

Layoffs are never good for the people who they happen to and even worse for the morale of the other CMs. I'm sure the remaining 61,550 CMs are stressed out beyond belief. Stressed out unhappy CMs usually will lead to a poor guest experience. And believe me from the people I have spoken it seems the only jobs that are safe at WDW right now are the CP kids since they have a contract for a certain number of hours per week.

[MinnieMommie]

I had this conversation at work today with a colleague whose best friend has a managerial position at WDW. She said he calls every day to let his friends know he still has a job but that he is frightened he will be laid off. He says they are all worried about the lay offs. We have to really feel for those who will loose jobs and understand that it could be ourselves, family or friends.

[DisneyNut2005]

Actually, the only CM's that they're actually laying off or moving around right now are those who are in management.

Of course, it'll always hurt when news of job losses make the rounds, but this news of only behind-the-scenes jobs being axed is probably going to be for the best.

First, by eliminating managers who spend more time backstage than they do onstage, it won't have as big an impact on the guest experience.

Second, by condensing the sizes of the various on-property management teams, they can be able to streamline the business better, since people won't have to go through as many managers at a time in order to get something done. And by not having to pay as many managers their typically high salaries, they'll be able to use that leftover for other necessities (hourly wages, project investments, etc.).

Besides, they pretty much had too many managers working in the company anyway.

[NotaGeek]

First, by eliminating managers who spend more time backstage than they do onstage, it won't have as big an impact on the guest experience.

Actually, it doesn't always work like that. The less managers means the bigger the teams, and to be honest, as a manger, having huge teams means there's less time to manage your people, and a good, positive team requires a manager that can work to grow each member in a way that best suits them as an employee. Unhappy, mismanaged employees directly impact the guest experience.

Cutting management saves higher salaries so it looks good on the bottom line quickier, but I have seen many companies that do this and then the regular hourly employees suffer in the end.

[ti2gr]

They may not be laying off hourly castmembers, BUT what they have done is cut our hours so much that most of us aren't even working a full 40 hour week anymore. Full time castmembers are lucky to get between 32 and 37 hours, and part-timers a lot less than that. I used to average 45-50 hours a week and now I'm only able to get 35. Given that most castmembers make less than $10 as it is, a decrease of 10-15 hours a week means that many are having a really hard time just trying to pay the rent. I know several castmembers that moved in together just so they can live in a decent place and be able to eat. In some cases up to 5 people living in a 2 bedroom apartment.

The newspaper article says 450 people, but it is a LOT higher than that. I like the way the total number of employees increased to 62.000. What they don't tell you is that over half of that figure is part timers or seasonal cast. And it is interesting how that number increased to 62,000 over the past few months from 58,000 when there was no hiring going on.

[JPL]

First, by eliminating managers who spend more time backstage than they do onstage, it won't have as big an impact on the guest experience.

Someone's boss getting fired adds uncertainty to those under the person that was fired. It's extremely stressful unless the workers under that person were unhappy with them. Thoughts like is my job safe come to mind. This is Psychology 101. As for it impacting guest experience a stressed out worker with other things on their mind is not going to work to their full capacity. This has proven in studies time and time again.

And by not having to pay as many managers their typically high salaries, they'll be able to use that leftover for other necessities (hourly wages, project investments, etc.).

The problem with theory is that the mnoney will most likely be used to pad the bottom line not improve the park or hirer more CMs at lower salaries. Comapnies streamline expenses by cutting high salaries for one reason to increase profit.

[DizneyRox]

The number one administrative expense is ALWAYS people (salary). You can't live with em, and you can't live without em. Any company worth their salt is always looking for ways to eliminate the people from the equation, and if they can't, you get them as cheap as possible.

That's why "we" offshore everything. That's why it costs more to bank with a teller than an ATM these days. That's why everyone is pushing to do things online.

These folks lost their jobs to help the bottom line. We'd be foolish to think the money saved is going to be used for any type of capital expenditure. The saving will be just be added to profit, making wall street happy which means more bonus for those that's left.

[Polynesian Dweller]

The number one administrative expense is ALWAYS people (salary).

Unfortunately, absolutely true. In my career, I was a manager in my jobs and salary always accounted for at least 85% of my costs. Cutting back on supplies, repairs, and the 'things' of an office accomplished almost nothing. When you have to take action due to budget cuts you really have no choice.

It is a sad thing to be laid off and to watch others get laid off. One can only hope that things will turn around quickly so these people can get their lives back and we all hope that somehow they will be Ok.

I have to make one other comment, this isn't about 'padding' the bottom line as some comments suggest, but in an economy like this (and I managed during a bad recession) its about preserving what business and services you can so that as much of your business as possible can be kept viable and as many of your people can be protected and maintained on the payroll as possible.