Why is Disney cutting jobs when its making money?
 

Corporations usually cut jobs when they are losing money.

Disney cut 1900 positions at its parks division, in the same quarter it books $600 million in profits. Thats how disney treats its employees.

Think about that next time you are buying disney crap for your kids.

I thought the same thing about Microsoft.. Even his e-mail saying they "only" made SIXTEEN BILLION dollars last QUARTER... I mean nice way to say we can't afford you people right?

But it's really a PR move. All those employees get nice severance packages, and many probably get re-hired in other departments and whatnot.

They don't do it because they're running out of money, they do it to appease the stockholders of the company who they have to answer to.

maybe they lie about their actual profits or see the future. It's easy to say you made a profit but it's just as easy to go broke doing the same thing in the future

:error:error

Correct. :)

Many companies cut jobs when they are making money. Do not see your point really. If I can find a way to get the same job done at the same quality with less people I would cut out some jobs too.

This does vaguely remind me of when everyone was up in arms over robots taking their jobs, as they were added to assembly lines.

Very curious was their quarter profits of 600 million overall profits or just park profits? Was the parks that profitable or were cuts possibly needed? Could it be attendance was down or whatever and those 1900 people were not needed during current times.

Because the 100 million dollar executive bonuses have to come from somewhere.

To make their company and stock holders more money.

ah yes it has to be that.

Where does the money for Obamas bloated budget come from?

Disneyland covers expenses each day in the first 15 minutes after park opens.

The rest of the day is pure profit.

Everything there is way overpriced, but hey, people pay for it.

:2 cents:

simple:

to make more............

newsflash: that's how things work in capitalism...

Their revenue was down 46% and they had to make some changes. That's just business 101.

Don't hate on Disney, it's the happiest place on earth :)

The goal of the firm is to maximize shareholder's wealth...
If you don't like that then move to Cuba.

1900 employees in the park divisions is nothing over the entire scope of eveyone that works for Disney in a park worldwide. They are getting rid of the 15 to 20 year permanents and will hire new employees for the summer to run the rides at a lower rate. They can hire teenagers on the cheap to work the rides. I worked at Disneyland for 9 years driving floats and we were the only non-union employees in that whole park so I saw how it was whenever a union contract would come up for renewal, we were the automatic scabs of the park, my girlfriends mother just got her 30 years of service award working in fantasyland and now has a silver pass that will turn gold when she retires and they can't do anything about it, she will get in free and get us in free until she DIES. The uniions kill the profits for the park operations and if they are able to lay off the 15 to 20 year old employees, then bring new people in, the shareholders will indeed get the profits they are looking for and be happy for one more year.

It really is..

BTW I live in Orlando :winkwink:

Some of you guys are such buffoons.

The purpose of any business is to make profits (that's money for you buffoons) for its owners.

If cutting liabilities (that's employees for you buffoons), while still maintaining income, will increase profits, then, they have an OBLIGATION to do that!

What were the profits the quarter before that? Are their profits going up or are they going down?

$600 mil is a lot of money to you, it might be a hit to them.

they simply are not in denial and they know it will only get worse before it gets better so to keep the net up they have to start cutting now, it sucks to have to lay people off but in most cases if they where in your shoes they would do the same so you cant feel too bad

" The Walt Disney Co. reported on Tuesday sharply lower profit during the first three months of the year, as the media-and-entertainment giant was squeezed by heavy discounting in its theme parks and a poor performance at its movie studio.

Disney said it made $613 million during the three months that ended March 28 -- the second quarter of the company's fiscal year -- down 46 percent from $1.1 billion during the same period last year. "

Revenue dropped 7 percent to $8.1 billion.

http://www.orlandosentinel.com/busin...,2091555.story

I worked at a big company until i got laid off recently, i saw the efforts they made to save jobs. they eliminated 401K matching, reduced hours, suspended raises & bonuses, all before doing any layoffs. The company was losing huge money when it laid off people. at least i can look at my employer & say they did everything they could to save my job before letting me go.

But if you work at disney, they will fire you just to keep making money.

My point is not about capitalism. Yes companies are free to fire at will, whenever they want. But there is a concept of corporate responsibility that is necessary for capitalism to work without government takeovers/bailouts. We are living in an age where corporate leaders think only of themselves. So we have corporations that are selling fraud mortgages, creating energy crisis (remember cali?) selling toys from china containing lead, food full of salmonella, etc.

in that context, i think its disgusting that a large company that takes in billions in profits anually is firing employees while it is making money. In light of the woes of travel, hotels, vegas, for disney to bring in a $600 million profit last quarter is quite an accomplishment. But when its done by firing the people that run the company, maybe its not such an accomplishment after all.

i can't wait for the glorious day when poor people rise up and take over the worlds largest corporations to show all those ignorant, ivy league education, highly experienced professionals with decades of experience, how it should be done. obviously retarded porn webmasters are well qualified to critique the business strategy of the worlds largest corporations in the midst of a severe economic recession.

Greedy?!

Or maybe the parks are losing money!?

Because they are evil.

Parks division made $171 million in the quarter.

you never have anything to contribute except insults. go away.

there are better forums for you out there you know.

1) the communist party of America

there you can discuss corporate practice and how the workers should control the means of production in an economy (because they are obviously qualified to do so)

2) GoHugYourself.com - this is a nice place for hopeless pussies to talk about flowers, rainbows, unicorns, butterflies and bubbles - where no one is allowed to get upset.

:thumbsup


No one is entitled to a job, just for the sake of having one. They wouldn't cut the jobs if they were needed :2 cents:

To make more money.

I'd be laying people off too.

And that helped how? Are you suggesting Disney should just keep taking bigger and bigger hits until they are no longer profitable? Sure sounds like it.

You act like that is a lot of money. That is only 17 million burgers with a Coke combos.

Am I the only one here that thinks it's prudent for companies to be pro-active if they know they're going into tougher quarters that won't meet the market expectations?

Brad

Disney treats their employees like gold. I think you are mistaken. I've known a few people that worked for them in various departments of the company. They are a great company.

i guess its better to have a compliant workforce that happily takes it in the ass because hey, that how capitalism works. Its great to work for someone 10 years & they fire you just to maintain net margins. Thats the american way in republican lala land.

Thats also why our country is so fucked up.

inorder to make more profit

is money that important to a company, that it is better to fire employees while making money? You do understand that layoffs fuck up the morale of people still working there. To the executives in corporate america that have run us into a ditch, clearly money is that important. Money is definitely more important than employees at disney, no matter how well they treat them.

Would you like to think about that for a moment? Maybe as a stockholder.

Stop asking logical questions. this thread is not the place for it.

Stupid thread of the day.

i know dude. the high society people who own all the disney stock tip their champagne glasses because management kept the money coming in. Meanwhile 1900 jobs are out the door. Maybe i'm being a populist here. The shareholders would fire me as CEO because i protected jobs at the expense of profits. I guess i need to become crueler if i want to be rich.

The same place it came from for Bush's bloated budgets.

Taxpayers.

Layoffs make for fewer taxpayers. You do the math.

And yes, companies got to do what they got to do to maintain the bottom line and such but that doesn't mean that these kind of stories don't suck :2 cents:

What about the elderly who own Disney Stocks as part of their retirement plans? You are aware that the percentage of "average" Americans who own stocks and bonds is higher than ever before in history? It isn't just "high society people" It's more complicated than that. And yeah, I feel bad about people losing their jobs. But Disney is a corporation and has to think about the big picture and the future. They aren't in business to give people jobs. They are in business to make money and grow as a company. Nobody is owed a job in this world. Matter of fact nobody is owed anything. That's just the way it is.
If a guy had a job there for 10 years...then instead of feeling bad about it, he should be happy he got paid for 10 years. It's rough out here.