Disney plans resorts reorganization, layoffs {Merged Threads}

[Ed]

Disney plans resorts reorganization, layoffs

Jason Garcia
Sentinel Staff Writer

5:20 PM EST, February 18, 2009

The Walt Disney Co. announced a sweeping corporate overhaul Wednesday at its domestic resorts, with plans to combine back-office operations at Walt Disney World and Disneyland and eliminate an unknown number of jobs.

In a memo to employees at Walt Disney Parks and Resorts, division Chairman Jay Rasulo said the corporate streamlining -- which will include merging "operating infrastructure" at Disney World and Disneyland under the leadership of Al Weiss, president of worldwide operations for Parks and Resorts -- has been accelerated by the nation's troubled economy.

"The long-term success of Parks and Resorts depends upon our ability to continue to adapt and innovate, to respond to ever-changing guest preferences, and to implement an organization and cost structure that meet today's economic realities," Rasulo said. "We must accelerate the evolution of our business and further refine our work structure to work in a more integrated and effective manner."

Disney, which employs about 62,000 people in Central Florida, would not say how many jobs will be eliminated by the move.

"Organization changes require difficult decisions, including the elimination of some roles," Rasulo said. "These decisions were not made lightly and we know this will be a challenging transition. These people are our friends and colleagues, and they have made valuable contributions."

[TheRustyScupper]

LOS ANGELES (Reuters) – Walt Disney Co said on Wednesday it will consolidate some "back of house" operations, including menu planning and ride design, at its two U.S. theme parks to try to offset the effects of the global economic downturn.

The reorganization is effective immediately and will result in new job cuts, but the company would not specify how many.

Disney Parks Chairman Jay Rasulo said "economic realities" required the company to focus and streamline its operations in a way that "eliminates redundancies."

Earlier this month, Disney's parks division reported a 24 percent drop in quarterly operating income and a 4 percent revenue decline in part due to slowing consumer spending.

The new organization calls for Walt Disney Imagineering, the parks' engineering and design teams, to be consolidated into a single group that handles attractions for all parks.

The company also will create a single domestic group to handle behind-the-scenes services such as maintenance, menu planning and security, for Walt Disney World and Disneyland.

Last month, Disney Parks and Resorts offered voluntary buyouts to 600 parks executives at the U.S. parks to trim its administrative costs as hotel bookings slipped at its parks.

The company received "a satisfactory response" to that offer but did not divulge the number of executive positions that would be eliminated.

[IloveDisney71]

This is so SAD but I guess everyone is dealing with layoffs.
At my school we are losing 7 positions. This economy is awful.
I just hope that, when things turn around, the people who are being let go now will be the first ones hired back - at Disney and every other business. In these pressing economic times, I guess there will be sacrifices everywhere.

[IloveDisney71]

Wow! I just hope that these consolidated teams remember that WDW and DL are not exactly the same and shouldn't be treated as if they are.

[JPL]

This was a long time coming the resorts are run so differently that it still amazes me they are under the same parent company. Hopefully this leads to an annual pass valid on both coasts.

[Ian]

I hate to praise any corporate decision that results in folks losing jobs, but the truth is this has been a long, long time coming.

I've always been completely amazed at how the two domestic parks were run totally independently of one another. Not only does that lead to a ridiculous level of redundancy in corporate functions, but it also leads to very inconsistent guest experiences. As someone who has visited both parks, I can tell you that the differences are striking.

I see this as a very painful yet very good thing for Disney. Eliminating all these operating inefficiencies should lead to a much larger capital base to plow back into the parks for upgrades and enhancements.

[Greenlawler]

I hate to praise any corporate decision that results in folks losing jobs, but the truth is this has been a long, long time coming.

I've always been completely amazed at how the two domestic parks were run totally independently of one another. Not only does that lead to a ridiculous level of redundancy in corporate functions, but it also leads to very inconsistent guest experiences. As someone who has visited both parks, I can tell you that the differences are striking.

I see this as a very painful yet very good thing for Disney. Eliminating all these operating inefficiencies should lead to a much larger capital base to plow back into the parks for upgrades and enhancements.

Agreed, and yet I hope the parks retain their unique personality. I have found the operating differences annoying.

[Tekneek]

I only see this as a natural event because they have started sharing attractions again. When they were developing separately, offering different experiences, it made more sense to keep them in different silos. I don't see where the innovation is coming from, unless tossing those salaries overboard means WDI might get more creative freedom.

[GrumpyFan]

Hopefully these "back of house" job cuts will not impact the front of house guest experience. I'm sure there will be some transitional effects, but hopefully not too bad.

[DizneyRox]

Eliminating all these operating inefficiencies should lead to a much larger capital base to plow back into the parks for upgrades and enhancements.

Or a bigger bonus next year for those at the top. TWDC is one of the fattest cats I've seen. The only problem with these cuts/consolidations is that I think we will now see even less diversity in the parks. We have already witnessed this with the gift shops, next up menus, etc...

[doombuggy]

I hope I don't lose my job.....

[DISNEYFIX]

Get the CEO and other execs to kick a few million into the company coffers to keep other people afloat. Sorry but just a little poed at how unbalanced and unfair this is to the little guy.

[JPL]

These are not "little guys" so to speak losing their jobs these are executives on the high end of the pay scale. Jobs like President of Theme Park Entertainment WDW and they have the same job title duplicated for both resorts. So they are making on position Theme Park Entertainment Disney Parks. It's basically taking any position that can be consolidated into one for both resorts. Basically the person with the position will just have both resorts report to them. I really don't think guests will experience any negative changes from this.

[GothMickey]

I hope I don't lose my job.....

Good luck. I hope you don't either. With this news, I would expect we will see more "Disney PArks" branding and cloning of rides?

[GothMickey]

These are not "little guys" so to speak losing their jobs these are executives on the high end of the pay scale. Jobs like President of Theme Park Entertainment WDW and they have the same job title duplicated for both resorts. So they are making on position Theme Park Entertainment Disney Parks. It's basically taking any position that can be consolidated into one for both resorts. Basically the person with the position will just have both resorts report to them. I really don't think guests will experience any negative changes from this.

But Jay Rasulo and Meg Crofton are still around, as is Phil Holmes. All three are killers of the magic.

[DizneyRox]

Name dropper! hehe

From what I've seen, people get promoted to the level of their incompetence. At Disney, like most big business, failure seems to be rewarded.

[Aurora]

I can see how this move would lead to more corporate efficiency but I'm concerned that instead of trading up in imagineering we may see more "cookie cutter" type attractions and operations in the future, way beyond what we've already seen.

I'm also concerned that there will be a loss of diversity. Despite their similiarites, at their hearts Disneyland and WDW are two very different resorts, in style, history, atmosphere, guest demographics and attractions. Things that will work in California won't work in Florida, and vice versa.

Because of the need for streamlining in this economy, I'm doubtful that any new management strategy will keep this in mind.

[RocknBev]

I wish Walt were still here
Although I am sure layoffs would still be existing with the economy, I don't think we would be worried about those staying being those who have "lost the magic"

[JPL]

I think we need to look towards some of the positive effects this may have like the possibility of an AP good at both resorts, similar check-in procedures,DDP, etc.

[GothMickey]

Name dropper! hehe

From what I've seen, people get promoted to the level of their incompetence. At Disney, like most big business, failure seems to be rewarded.

Oops, did I drop the names of some of the worst management in WDW? Bad me. The only good thing I read was most of the employees that report to Meg Crofton will no longer report to her. As long as these three are still in charge, expect lackluster attractions, scaled down refurbs, and attractions opened long before refurbs are complete (SSE anyone?).