Punch out, Goofy: Disney Parks banishes nearly 2,000 Mouseketeers
Filed under: Career, Recession
The job massacre at Disneyland and Disney World was far worse than we knew. Two weeks ago, Disney wasn't copping to a number for its domestic layoffs, but bystanders put the figure at around 450.
They weren't even close. In truth, there are now 1,900 fewer people punching the clock in Fantasyland.
The law says that employers only have to file advance notice of layoffs when more than 500 workers are eliminated at one site. Because Disney spread its hatchet-work around the organization, the end came without a firm notice, but employees will at least get 60 days' paid severance. Disney has also evaded the ire of the unions (and bad publicity) by simply cutting non-unionized employees instead.
Recessions gut discretionary luxury spending, and that hits Disney where it lives. When times are tough, you may go see a $11 movie, but you won't spend $200 a day to see the living DVD ads of Walt Disney World. The $75-a-day gate entry has finally come home to roost for the company, which doesn't seem to have a foul-weather strategy for its high entry prices.
In Orlando, where the most pink slips were handed out (I wonder if Disney's pink slips have glitter on them?), 2.3% of the former workforce is now gone, both through restructuring and old-fashioned firings. It's the biggest hit to the parks since right after the attacks of 2001.
Tourism drop-off in Orlando has been so severe -- more than 26% off last year, the worst performing market in America -- that in February, the county took in 29% fewer occupancy taxes this year compared to 2008, plunging the local economy into further crisis. The local Convention and Visitors Bureau is so alarmed that it's doing something that CVBs rarely do: It's petitioning hotels and resorts for its best discounts and promoting the deals itself. So far, Orlando's tourism honchos maintain and advertise a list of hotels offering freebies of some kind (free nights, free golf), plus a "Deal of the Week" that gives at least $50 more in add-ons away to customers.
Are the lines at the Disney parks shorter? Not really. There are a number of capacity-controlling tricks, such as running ride vehicles less frequently, that keep queues at the expected levels, and there are also plenty of visitors who will pay to enter the parks but scrimp everywhere else along the way, ignoring souvenirs and other splurges.
Disney is throwing some deals at the public, but all of them come with strings attached, such as requiring stays at the resort's own hotels (hotels located just a few miles off property can often be had for half the rate). One recently announced deal promises free meals for those who stay at least five nights at the resort, which is too much of a time commitment if you only want to visit a park or two. Disney's Dining Plan, as it's called, also has the obnoxious effect of cramming all the sit-down restaurants with participants and requiring guests to plan ahead with reservations for every meal of their stay, which takes the spontaneity out of a Disney visit. But so far, Disney has not offered to simply bring the price of admission down for out-of-state vacationers.
Both SeaWorld and Universal are putting the final coats of paint on skyline-changing roller coasters that they hope will buoy them in what's otherwise a stormy season. Disney World, though, has no big additions on the horizon, and it recently declared its Hong Kong park all but frozen in amber. I wouldn't be surprised to see more job cuts later on.
The law says that employers only have to file advance notice of layoffs when more than 500 workers are eliminated at one site. Because Disney spread its hatchet-work around the organization, the end came without a firm notice, but employees will at least get 60 days' paid severance. Disney has also evaded the ire of the unions (and bad publicity) by simply cutting non-unionized employees instead.
Recessions gut discretionary luxury spending, and that hits Disney where it lives. When times are tough, you may go see a $11 movie, but you won't spend $200 a day to see the living DVD ads of Walt Disney World. The $75-a-day gate entry has finally come home to roost for the company, which doesn't seem to have a foul-weather strategy for its high entry prices.
In Orlando, where the most pink slips were handed out (I wonder if Disney's pink slips have glitter on them?), 2.3% of the former workforce is now gone, both through restructuring and old-fashioned firings. It's the biggest hit to the parks since right after the attacks of 2001.
Tourism drop-off in Orlando has been so severe -- more than 26% off last year, the worst performing market in America -- that in February, the county took in 29% fewer occupancy taxes this year compared to 2008, plunging the local economy into further crisis. The local Convention and Visitors Bureau is so alarmed that it's doing something that CVBs rarely do: It's petitioning hotels and resorts for its best discounts and promoting the deals itself. So far, Orlando's tourism honchos maintain and advertise a list of hotels offering freebies of some kind (free nights, free golf), plus a "Deal of the Week" that gives at least $50 more in add-ons away to customers.
Are the lines at the Disney parks shorter? Not really. There are a number of capacity-controlling tricks, such as running ride vehicles less frequently, that keep queues at the expected levels, and there are also plenty of visitors who will pay to enter the parks but scrimp everywhere else along the way, ignoring souvenirs and other splurges.
Disney is throwing some deals at the public, but all of them come with strings attached, such as requiring stays at the resort's own hotels (hotels located just a few miles off property can often be had for half the rate). One recently announced deal promises free meals for those who stay at least five nights at the resort, which is too much of a time commitment if you only want to visit a park or two. Disney's Dining Plan, as it's called, also has the obnoxious effect of cramming all the sit-down restaurants with participants and requiring guests to plan ahead with reservations for every meal of their stay, which takes the spontaneity out of a Disney visit. But so far, Disney has not offered to simply bring the price of admission down for out-of-state vacationers.
Both SeaWorld and Universal are putting the final coats of paint on skyline-changing roller coasters that they hope will buoy them in what's otherwise a stormy season. Disney World, though, has no big additions on the horizon, and it recently declared its Hong Kong park all but frozen in amber. I wouldn't be surprised to see more job cuts later on.
Reader Comments (Page 1 of 7)
4-06-2009 @ 8:45PM
Bob said...
oh noo..
Reply
4-06-2009 @ 9:28PM
karen said...
Original idea.........SLASH PRICES.........across the board
Reply
4-06-2009 @ 8:59PM
jeff said...
was at disney in march food prices at parks and resorts way to high plus food sucked taste wise
Reply
4-06-2009 @ 11:30PM
mickey said...
Just forget the whole vacation thing. We have been gouged and raped and now they want us to throw money at them? You have got to be freakin' kiddinnnnnnnnnngggggggg!!! Time for everyone to quit with the denial. This economy is rotten to the core and if you want middle class to revive it, give them some bailout instead of four times for AIG and three times for GM and banks with 50 million a year CEOs. Get real!!
4-06-2009 @ 9:10PM
Pam said...
I think the person who wrote this article doesn't "get" the Disney food plan at all. If you were wanting to go to a very nice restaurant- what do you do? You call ahead and make reservations, of course. That's what you do at Disney. These sit down restaurants aren't just restaurants - they are nice restaurants with extravagant menus, service, and atsmosphere. People need to make reservations because otherwise people would be waiting for hours, just like you would for a non-Disney restaurant (without reservations) Also, people that go to Disney usually plan ahead like to know where they are going to eat each day. It is nice to leave a park sometimes and go to a resort to eat. You get away from crowds and the heat. Once you have had a great meal you can go back to the park and enjoy the rest of the day. Yes, there are fast food type counter service places that require no reservations. These are great for lunch when you want to get back to the rides. So I suggest the writer of this article re-think Disney's dining plan and find out what Disney is all about before judging a place that you probably have never been to. I can help you make reservations if you would like.
Reply
4-06-2009 @ 9:57PM
greg said...
hey pam do u work for disney try getting a seating in canada on the meal plan its 2 units also if you want to eat at 330 or 1000 theres probably an opening otherwise your out of luck . done disney orlando severval times back to 1978 its just not as clean, friendly or cost effective the mouse that roared its about time they lower there prices dont ya think
4-06-2009 @ 11:41PM
Richie said...
You are totally wrong. Most of Disneys dining is casual, even the "sit down". Secondly, a large piece of the Disney pie and support off season is local and annual pass holders who go when they can and often without planning. I worked their for several years I know very few people who plan thier entire meal schedule when on vacation. It is too easy to screw it up. The meal plan at Disney is a disaster. Passholders hate it and the average vacationer who can not get anything more then a turkey leg or burger hates it. Eventually they will get rid of the plan or allow only a percentage of the restaurant to be used for it and leave a portion for standbys and walk ins.
4-07-2009 @ 12:01AM
MO-5 said...
DISNEY SURE HAS U BRAIN WASHED AS AN EMPLOYEE! NO USE SUCKING UP BECAUSE UR NEXT IN LINE TO BE LAID OFF DISNEY IS A RIPOFF AN PEOPLE KNOWIT SO CRAWL BACK INTO GUEST RELATIONS AN STOP FEEDING YOUR CRAP ON LINE! OH, YEA BE SURE TO LET UR AREA MANAGER YOU POSTED A ARTICAL ON AOL U MIGHT GET UR PIC PUT ON THE WALL AS EMPLOYEE OF THE WEEK!
4-06-2009 @ 9:13PM
kevin said...
need to lower price for residents seasonal used to go but can't afford anymore .4 kids not easy
Reply
4-06-2009 @ 9:18PM
chill said...
You know I feel bad about the employees being laid off but Disney has been having this come to ROOST for a while. they have gotten greedy. For them to think that their $75.00 ENTRENCE FEE and $10.00 parking fee is ok. REALLY IT IS NOT OK. YOU ONLY NEED TO GO TO THE PARK A FEW TIMES in your lifetime. IT IS NOT ALL THAT.YES SMALL CHILDERN LOVE IT. BUT AFTER THAT IT'S OVER. Parents only oblige the kids because the media and advertizers makes such a big deal about it. They get suckered into it. The other parks have more fun thing to offer than they do anyway.
Reply
4-06-2009 @ 9:24PM
Alafrance78 said...
We were in Disney World in 2007 and the disney meal plan was great. We made our dinner reservations the day we arrived and it was great. The meal plan doesn't just include an entree it includes appetizers and desserts for both lunch and dinner drinks and tips. The meal plan was a steal in comparisson to what other people were paying for a single meal. You also get a snack per person per day. The value resorts were reasonably priced. The ticket prices per day are insane though. I do wish that out-of-state residents were offered a better deal like the Florida residents.
Reply
4-06-2009 @ 9:34PM
laurie said...
We really thought about a Disney vacation this July but it was just so expensive! They had no deals what so ever! We dont care about the food plan, we really want to stay on property and not have to pay crazy prices. I think Disney is in for a hugh disappointing summer and a lot of empty rooms.
Reply
4-06-2009 @ 9:56PM
Cindy said...
What do you mean no deals at all??? I called 2 weeks ago and was able to book buy 4 nights get 3 free (they originally offered this from last fall to June 30 dates, but they have extended it) at a value resort (All-Movie), with the park hopper, waterparks, and the meall plan for two adults and 2 full-fair children (ages 10 & 11). I think my total was about $2500.... but that also includes free transportation ANYWHERE in the park. Start at Magic Kingdom, after a few hours, hop a bus to Animal Kingdom, have lunch, etc... We went in June 2007 for the first time. We did it the same way then. It's the only way. One of our sons has autism and this really gave us flexibility that we needed for our family. Call Disney World directly and I'm sure you will be able to get some deals.
4-06-2009 @ 10:43PM
skuzafan said...
No deals? I don't know where you actually looked but they've got some great deals through the end of August. We're going in July on the 4night/3 free plan. Including park hopper passes and meal plan our total was not a whole lot more than what the hotel room for 7 nights would have normally cost.
Now is actually a great time to get a deal.
4-06-2009 @ 10:50PM
Pam said...
You really don't want to miss out on Disney. If you stay on Property you really need the dining plan. You will save a ton of money. We have gone to Disney with and without the Disney food plan. The first time we paid a whole lot more for the food without and couldn't go to the really nice restaurants because they are expensive. Then went another time with the food plan and saved a bunch of money, got eat to in the really nice restaurants, and didn't have to worry about the prices. When you go to the nice restaurants you can see the Characters without standing in line and also get great food and service. PLease reconsider going to Disney. You won't be disappointed.
4-08-2009 @ 11:47PM
Char said...
There are some great deals to be had but it does take some work & investigating. We went last Aug. For 3 of us to stay on property in a studio with small kitchen, and with park hopper, rental car, food, and souvenirs oh and flight it was under $1900! I was tickled.
4-06-2009 @ 9:30PM
George said...
I am not sure where the writer was able to get his information. The news stations in Orlando and the Orlando Sentinel have estimated that business will be off by 10% this year. These layoffs were actually the result of combining the operations of both Walt DIsney World and Disneyland. True, it did come about from the recession, but this article does not really reflect what has really happened. I am a local and a retiree, and each time I have been since the beginning of 2009, I have seen large crowds. Today, I-4 was tied up near the exit to Downtown Disney, and traffic was backed up everywhere that I drove.
Disney has some value resorts, and they are very good for families. Keep in mind that staying off property requires a car rental if people fly in. As one comment states, the Disney fine restaurants are excellent and with service as it should be. The old addage is true. "You get .at you pay for." It is that simple.
Reply
4-06-2009 @ 9:39PM
steve said...
tooooo expensive to go in there to enjoy ,they sucks i will never go back
Reply
4-06-2009 @ 9:42PM
Ex Mouseketeer said...
If the economy is hitting them so hard, why are they building two new cruise ships and a new timeshare resort in Hawaii?
Reply
4-06-2009 @ 9:44PM
teltech541 said...
This summer with more and more layoffs from now til then should prove the turning point for Disney. They are going to have to either lower their prices drastically, layoff thousands more or close whole sections of the park to make ends meet. The spending public is only going to hunker down even more if they know what is good for them. Extremely few are admitting it but there is the coming of the SECOND GREAT DEPRESSION we are going to have to deal with next year.
Reply