Who moved my cheese? Mickey Mouse gnaws away at theme park jobs
Filed under: Extracurriculars, Career, Travel
Profits at the Walt Disney parks tumbled by nearly a quarter in the first fiscal quarter of the year, leading the theme park giant to stanch the flow of blood by laying off staff. Keep your hands and arms inside the vehicle, Disney fans -- it's going to be a bumpy ride.
Disney Parks isn't telling just how many positions it plans to eliminate, but suffice to say that it'll take more than pixie dust to get the parks airborne again. The company recently offered buyouts to 600 park executives at the tip of a barrel loaded with pink slips, and last week it consolidated operations of its resorts (which previously had a wide degree of autonomy) into one organization. Now comes word that the cutbacks will kneecap the rank and file, too.
The Disney parks have been stealthily slashing at the essentials for a year now, to little notice. Last June, it quietly began outsourcing Audio-Animatronic robotic figures, a technology for creating lifelike human robots that the company famously invented and has operating on many of its most beloved attractions. Now, China helps make the figures. In September, the start of their fiscal year, the Disney parks yanked attractions, closed areas, and gutted the schedule of spectaculars.
Longtime fans are already grousing about other cuts. Longer waits for resort shuttles and to reach phone operators. (Adding to the insult, Disney doesn't offer toll-free long-distance numbers to the general public, so would-be guests are paying for the wait.)
Inside the parks, some attractions (including the Monsters, Inc. comedy club at the Magic Kingdom and the historical exhibition about Walt Disney himself at Hollywood Studios) are now trimming their opening hours so that the company won't have to pay two shifts' worth of actors to work them. Although the resorts can truthfully claim they're operational, in fact, their availability has been curtailed. Even some high-priced (and staff-intensive) "character meals," during which kids meet with a fleet of costumed characters, have been shelved, with some resort restaurants no longer offering them at all.
It's not as if the parks are empty. The lines seem as long as they ever were. Disney is throwing deal after deal at the public, including the right to visit for free on your birthday in 2009, and Universal Orlando gave away 100,000 one-week passes during the Super Bowl. But nothing can bring back the free-spending days of the past. Once guests get through the gates, they simply aren't spending as much as they used to spend, and the company is feeling the pullback.
For years, Disney's bottom line has depended on the principle that once customers are in the thrall of that "magic," they won't be able to resist upgrading their hotel rooms, buying plenty of souvenirs, and staying for longer than they might need to. Now that Americans are budgeting more carefully, the impulse buys are choked off, and that's thrown a wrench into Disney's economic model. In no small way, the penalties of charging $75 for a day ticket are coming home to roost. Guests refuse to spend much more than that now.
Orlando itself is hunkering down for a cold economic winter. Forbes magazine says that Orlando is the seventh-emptiest city in America, with 7.3% of homes sitting vacant, and 12.3% of rentals empty. Hotel rooms are faring even worse: Last month, four in ten, on average, were vacant.
When the theme parks are slashing jobs (Universal Orlando is also canning shows to combat payroll costs), don't expect those figures to improve: Some 200,000 jobs in Central Florida depend on tourism, and 62,000 of those positions are with Disney.
In Anaheim, where the other American Disney park is, the city is so desperate it has ruled in its own favor toward forcing the major online hotel room bookers to pay more than $21 million in taxes that no one's really sure they actually owe.
It's gotten so bad for Disney that Republicans have taken to using its name as a shorthand for all that is wasteful and useless. In last night's Republican response to Pres. Obama's address, Louisiana Gov. Bobby Jindal once again mocked Disneyland by citing the stimulus bill's promise of development of a high-speed rail line that could go there. I'm sure the 3.1 million residents of Orange County don't appreciate the sarcasm. Disney's world may be getting smaller after all, but we could all use more affordable public transportation.
Disney Parks isn't telling just how many positions it plans to eliminate, but suffice to say that it'll take more than pixie dust to get the parks airborne again. The company recently offered buyouts to 600 park executives at the tip of a barrel loaded with pink slips, and last week it consolidated operations of its resorts (which previously had a wide degree of autonomy) into one organization. Now comes word that the cutbacks will kneecap the rank and file, too.
The Disney parks have been stealthily slashing at the essentials for a year now, to little notice. Last June, it quietly began outsourcing Audio-Animatronic robotic figures, a technology for creating lifelike human robots that the company famously invented and has operating on many of its most beloved attractions. Now, China helps make the figures. In September, the start of their fiscal year, the Disney parks yanked attractions, closed areas, and gutted the schedule of spectaculars.
Longtime fans are already grousing about other cuts. Longer waits for resort shuttles and to reach phone operators. (Adding to the insult, Disney doesn't offer toll-free long-distance numbers to the general public, so would-be guests are paying for the wait.)
Inside the parks, some attractions (including the Monsters, Inc. comedy club at the Magic Kingdom and the historical exhibition about Walt Disney himself at Hollywood Studios) are now trimming their opening hours so that the company won't have to pay two shifts' worth of actors to work them. Although the resorts can truthfully claim they're operational, in fact, their availability has been curtailed. Even some high-priced (and staff-intensive) "character meals," during which kids meet with a fleet of costumed characters, have been shelved, with some resort restaurants no longer offering them at all.
It's not as if the parks are empty. The lines seem as long as they ever were. Disney is throwing deal after deal at the public, including the right to visit for free on your birthday in 2009, and Universal Orlando gave away 100,000 one-week passes during the Super Bowl. But nothing can bring back the free-spending days of the past. Once guests get through the gates, they simply aren't spending as much as they used to spend, and the company is feeling the pullback.
For years, Disney's bottom line has depended on the principle that once customers are in the thrall of that "magic," they won't be able to resist upgrading their hotel rooms, buying plenty of souvenirs, and staying for longer than they might need to. Now that Americans are budgeting more carefully, the impulse buys are choked off, and that's thrown a wrench into Disney's economic model. In no small way, the penalties of charging $75 for a day ticket are coming home to roost. Guests refuse to spend much more than that now.
Orlando itself is hunkering down for a cold economic winter. Forbes magazine says that Orlando is the seventh-emptiest city in America, with 7.3% of homes sitting vacant, and 12.3% of rentals empty. Hotel rooms are faring even worse: Last month, four in ten, on average, were vacant.
When the theme parks are slashing jobs (Universal Orlando is also canning shows to combat payroll costs), don't expect those figures to improve: Some 200,000 jobs in Central Florida depend on tourism, and 62,000 of those positions are with Disney.
In Anaheim, where the other American Disney park is, the city is so desperate it has ruled in its own favor toward forcing the major online hotel room bookers to pay more than $21 million in taxes that no one's really sure they actually owe.
It's gotten so bad for Disney that Republicans have taken to using its name as a shorthand for all that is wasteful and useless. In last night's Republican response to Pres. Obama's address, Louisiana Gov. Bobby Jindal once again mocked Disneyland by citing the stimulus bill's promise of development of a high-speed rail line that could go there. I'm sure the 3.1 million residents of Orange County don't appreciate the sarcasm. Disney's world may be getting smaller after all, but we could all use more affordable public transportation.




Reader Comments (Page 1 of 7)
2-25-2009 @ 12:35PM
JoJo said...
I watched both speeches. Jindal wasn't mocking Disneyland, he was discussing the HUGE amount of WASTEFUL spending that was in the stimulus bill. A 700 billion dollar train going from Anaheim to Las Vegas isn't what the country needs right now, but when you're the Senate Majority leader, you're able to slip pet projects into the bill. If you think that these so-called shovel ready construction jobs are going to help...they will IF you are a union member. An Obama rep even stated that there will be a few jobs for non-union members. This reminds me of the FDR WPS program. If you wanted a job, the people that did the hiring would verify if you were a registered Democrat, if you weren't, they had the voter registration paperwork right there for you to fill out. FDR's programs didn't help those who really needed it either. Most jobs went to the west coast where support of FDR was quite low. Those that suffered the most lived in the south. FDR had people arrested, put people out of business if they disagreed with his policies etc. Why Obama and his staff pick out some of the worst policies is beyond me...but then, they're just in there winging it. Just like his speech. Obama is a great speaker, it's just too bad he really doesn't SAY anything.
Reply
2-25-2009 @ 12:58PM
Jason Cochran said...
Jojo,
My guess, from your comment, is that you don't live in Southern California. If you did, you'd know that Jindal totally misrepresented the train proposal. In fact, it would connect major metropolitan areas in Southern California and Las Vegas. In fact, it currently takes more than an hour, sometimes two, to commute the 36 miles between Anaheim and Los Angeles on the clogged freeways. A train would cut that to minutes, and cut dramatically on mass gas usage. Sounds to me like something the country needs right now!
My point is that Jindal is using the word "Disney" as a symbol for silly uselessness. The Los Angeles blog LAist.com put it well this morning: "This isn't about party hopping between the two international tourist meccas (and what's so bad about good tourism anyway?). So please, stop using this fictitious and silly symbol to sell your point of view, it's weak." Things have gotten pretty bad for Disney if Jindal can rile up constituents just by using its name. It worked, too--apparently simply by name-checking Disneyland, he made people think a serious-minded important public transportation project is, as you just wrote, a "pet project." Poor Disney!
2-25-2009 @ 8:43PM
dwight said...
JoJo
Im a little stunned at the comment that the south suffered under fdr. The creation of tva did many things to revitalize the south. In the north west corner of Alabama it created over 5000 jobs alone. The dam system made the Tennesse river not only passable(before this there were areas such as the shoals that at times could be crossed in a wagon) it also created fairly cheap hydro electric power which I am sure California would gladly accept when brown outs are occuring. Before fdr Alabama was over 70% agriculture with poor share croppers. The disrtubution of wealth was terribly one sided. There are a great many other things but to many to list in a email. Im not trying to say fdr was perfect no human is but unless you were alive during those times or had close relatives who did there is no way to get the full feel or story out of a history book. Obama stimulas plan does appear bloated and there are many things there I dont agree with but take a poll of americans who are 65 plus in age and ask their opinion of fdr.
2-25-2009 @ 8:26PM
Cherie said...
TO JOJO
I have to take a minute to answer what you said about the FDR administration.
My family was from the POOR south. They slept on corn cob mattresses, and they traded work for food. They worked their gardens from dusk til dawn in the summer, and on spare days they chopped wood for the hard winters.
I had Democrats and Republicans on both sides of my family. I'm not quite sure where you got the idea that only "Democrats" got work, because all my family, Republican and Democrat alike lived better after FDR.
Don't bring this moronic attitude we have developed one party against each other into a time when the people just wanted to have food for their children. The way it's been told to me from all that I know that were there, "Party lines were dropped, we didn't care who or what they were if they were going to try to help us". Too bad we can't have that mentality now.
2-25-2009 @ 11:48PM
denise said...
i am a liberal democrat and my father was republican but he had enough common sense before he died to recognize the difference between government help and nationalism. my father worked 35 years for GE before he died. He even said i made a great decision to work for state government because he knew i had job security. he was a self-made processing engineer and had also worked as a union employee. had he lived he would be proud that a intelligent strong black man became president. i worked 28 years before i retired. i witness stupid ignorant people
who believed that the politicians who claim no new taxes actually meant it. i have worked for democrats and republicans and they both raise taxes. The democrats at least make sure i get something for my taxes the republicans take my taxes and then tell me i am stupid for asking for help
2-26-2009 @ 2:39AM
Manny B said...
JoJo, You said president Obama is a good speaker but doesn't say anything, well Bush was a bad speaker who said less than nothing and did everything to put us in this mess we're in now. It's amazing that after 8 years of partying with our (the taxpayers') money, the repubicians are all of a sudden concerned about spending money when it's not directly benifiting them. Obama has already done more in one month for middle america than Bush did in 8 wasted years.
2-26-2009 @ 5:59AM
therealdeal said...
I don't know what you writing about. I lived through the depression, and no one asked me to sign on a Dem to get a job. FDR put America back to work. It is a lie when people say he did not stop the depression. If he did what the Republicans did, we would be in a lager hole today. I was born in 1915, I know. I was there.
2-26-2009 @ 11:51AM
Plato said...
NO ONE knows what to do in this UNPRECENTED economic disaster (bankrupt Social Security and Medicare accounts as baby boomers retire, budget deficits far into the future to try to 'fix' what was broken the last 8 years, a never ending war on terror, the great sucking sound of jobs leaving the U.S., huge trade deficits due to FAILED trade policies, Americans that STILL want to buy products from EVERYBODY other than American companies that actually SUPPORT our economy, and Government printing presses running 24/7 to try pay for all the above)! Criticizing Obama for at LEAST TRYING something other than the great Republican fix for everything, THE ALMIGHTY TAXCUT, is the current Republican strategy - JUST SAY NO TO EVERYTHING, WITHOUT OFFERING ANY ALTERNATIVE. I don't agree with everything in the Obama administration, but it is a truly refreshing DEPARTURE from the past 8 years of TORTURE the Country endured.
2-25-2009 @ 8:21PM
G said...
If Orlando is the "7th emptiest city of America" then why there is so much traffic on I-4???
Reply
2-25-2009 @ 8:30PM
kim said...
That's what I'd like to know. The traffic here sure hasn't slowed down, and the I-Drive area seems as busy as always. I've gone to two Mardi Gras concerts at Universal, and the crowds surely don't seem any thinner there either.
I do agree that the high cost of tickets has finally hit Disney, and the other parks who always follow suit in raising prices, right in the keister. I have a Universal annual pass because it's affordable, but as for Disney-well, I'll be going on my birthday this year, and unless they lower the cost of a ticket or an annual pass, I won't be going back for a while.
2-25-2009 @ 11:52PM
Lars Cain said...
Not only is the traffic on I-4 horrible but also the drivers using cell phones at 90 mph and the cataract glasses are like the bottoms of coke bottles.
2-26-2009 @ 7:31AM
terri said...
That's where all the meth labs are.
2-26-2009 @ 10:47AM
D said...
You are so right about the Orlando traffic. I am terrified to drive on I-4 because of all the very agressive, speeding idiots that would just as soon as go over you or through you if you are not doing 20 miles over the speed limit and are in their way. They have to be the rudest drivers in Central Florida. As for Disney, they priced themselves out of middle America's wallets. It is better to sell more cheaper tickets than a few outrageously priced ones. When they opened, the tickets were under $20. True you had to pay extra to get more ride tickets, but then you got to choose what you wanted to do, not have to pay for a bundle of rides you had no interest in. I for one don't need to ride on the tea cup ride, its for kids, so why do I pay for it?
How many people can afford $75 for a ticket, then $5 for a plain hamburger and more for a drink.....one single person could wind up paying well over $100 for a day at Disney, with absolutely no extras except food. Don't even mention the extra for parking.Thank goodness I don't having a crying child at my side wanting mouse ears, I pity the poor parents that have to deal with that.
S
2-25-2009 @ 8:29PM
robert said...
THE RIDES SHOULD CLOSE ALTOGETHER IN FLORIDA,FLORIDA IS GOING TO SINK INTO THE OCEAN.
Reply
2-26-2009 @ 11:28AM
enh said...
that's stupid
2-25-2009 @ 8:50PM
Jellybean said...
Oh Pooh! We all still love Disney as much as ever, Everyone is cutting back, why not Disney? Besides, it's only temporary. They will be back in full force very soon and all us fans will be waiting. In the meantime we'll still enjoy Disneyland. You can still get a GOOD meal there for a good price and the fun is worth it all.
As long as they don't skimp on the Customer Service everything will be fine. I love being treated special and it's still magical, just like when I was a kid! We LOVE you Mickey!
Reply
2-25-2009 @ 8:55PM
rnrad said...
For those of us who live in FL, you can't afford to take your family to any park for a day. $$$ to park, eat, drinks, and forget about giving the people who live nearby a break on the ticket prices. Even the 4 seasons pass is toooooo much$$$$. THANK YOU EISNER and all the other greedy CEO's past and present for screwing the hard working people that made it possible for you to rip us off. They get the big severance pkg with stock options while those that work in the park and put up with all the crap from some of the most rudest people in the world and have to put on the "disney family wholesome image" and take it are getting laid off, hours and benefits cut and yet we as a community are supposed to support it..............think again. Greed got you into it with all the other large companies in Detroit, Wall Street and the greed ridden real estate market, and you want the hard working people of this nation who are being laid off, taxed to death and told to tough it up and it is our privilege to pay taxes to bail out America. Let us all fall flat and live within our means. If you can't afford it don't buy it. Let the politicians take an IOU from the people and not get paid for a couple of years. Let them fly coach. Let them pay to remodel thier own office. Let them pay for their health benefits. See how the real Americans live.
Reply
2-25-2009 @ 9:12PM
lynn said...
right on everything you said is true but how can we get other americans fed up enough to do something about it?
2-26-2009 @ 6:01AM
Theone said...
Agree with you whole-heartedly, and would just like to add that the likes of the upper eschelon -- and all their over-paid, under-talented adolescent show ponies should take a pay cut and preserve the jobs of those who really need, and do, the work to keep Disney operating. When's the last time you ever heard of a Disneyland employee getting to celebrate his/her 'sweet sixteen' at the park ... all expenses paid?
2-25-2009 @ 8:55PM
S N said...
I can't understand why Disney is hurting. Granted their execs are probably overpaid and their laborers are underpaid, but there HAS to be profit somewhere. They are so over priced on EVERYTHING, and have hoards of people waiting to spend their dollars there.
Last month, while on holiday in California, we took our kids to Disneyland. After paying 12.00 for parking, then talking a short 1/2 mile hike to the ticket booth,we were greeted by endless lines of people wating to buy admission. The average wait was 90 minutes. We were told (by agitated employees) the lines inside the park weren't any better and the Fire Department was expected to show up any minute to close the park because it was filled to capacity (@ 11 a.m.!).
Because of the tremendous crowds, we settled for walking around the tourist trap shops in Downtown Disney. I felt it was a total waste of money to spend almost $500 on admission (for 5 people) for a day's worth of waiting in long lines with angry customers.
Between parking, hot dogs, sodas, and a few trinkets, Disney shanked us for $280 without us ever seeing Mickey.
I will not go there again.
Reply