What's up with all the cutbacks?

[mshanson3121]

Wow!... I've never seen so much negativity and misinformation. As far as your comment "there's a lot of cutbacks going on." Really? The company is spending hundreds of millions of dollars just in Orlando. That's not accurate. Disney is opening new attractions/rides/experiences at every park. You obviously haven't been there lately. (Avatar and Pandora have been a huge success) and they continue to bring record guests to Animal Kingdom. The stock is at an all time high. The resorts are packed during September (normally the slowest month of the year)...and there are construction cranes and new roads, hotels, rides and shows being added everywhere! Well...everyone is entitled to their opinion. You can go through life complaining that the glass is half empty or half full...it's the same glass.

You're clearly new to this board...lol

 

[hedberg1661]

Honestly, the character cutbacks are getting out of hand. We still don't have a new mayor on main street and now they are cutting the entertainment in DHS? Such a shame since this is one of the things Disney does that is above and beyond what others are doing. It used to be all about the details. Now, it is all about the money.

 

[Happyinwonerland]

My guess? We've been riding high on a great economy, one that is due for a slowdown very soon, and Disney (as well as other businesses) is trying to preapre before the storm hits.

 

[MickeyMinnieMom]

Should I cancel my trip? Ive planned for my family of 3 for our very first trip to Disney World in November. If they’re cutting back and lowering the experience, should I just spend my money on a cruise or another theme park instead? Ive got a quite a bit of money tied up in this and don’t want to find half the parks closed up due to cutbacks.

NO! I agree completely with @The Pho. The cuts they're putting in place (at least so far) are primarily things that I would bet anything the vast majority of visitors wouldn't even notice unless it was pointed out to them -- and even then, not a big deal to the average visitor.

Particularly repeat visitors develop favorites -- often the more off the beaten path stuff and details. Not to say that these don't generally add to a vacation experience -- I just do not think their lacking detracts for the vast, vast majority.

This is where boards like this can be a detriment, IMO -- don't mistake passion by some for a real problem for all. We are repeat visitors -- go 2-3 times a year in recent years -- and we ALWAYS have a ton to do!

 

[MickeyMinnieMom]

My guess? We've been riding high on a great economy, one that is due for a slowdown very soon, and Disney (as well as other businesses) is trying to preapre before the storm hits.

If that were the case (strong perceived chance of imminent slowdown), I think they'd be cutting a heck of a lot more. The "due for a slowdown" isn't really enough info to act on in any meaningful way. And when recessions have necessitated in the past, they've made the cuts they needed to and then built back up.

 

[Carrie Ellis]

My son is an Animation major and he is signed up for the notifications for the College Program. (Me too so I can catch things that come through that he might not see).
We just got an email for the College Program that is directly for lifeguards. I have never seen that before. The dates are March to October. This is really hard for him to even think about applying for because he would have to skip out on 2 semesters of school. Usually for the college program it is one semester and a summer. or just a semester. Also last year just for general "jobs" that we are signed up for receive emails notifications, they have offered hire on bonus from $500 to $1000 for lifeguard and housekeeping.
This makes me think they are REALLY needing employees, especially lifeguards.

 

[Happyinwonerland]

If that were the case (strong perceived chance of imminent slowdown), I think they'd be cutting a heck of a lot more. The "due for a slowdown" isn't really enough info to act on in any meaningful way. And when recessions have necessitated in the past, they've made the cuts they needed to and then built back up.

There is a lot of research and evidence that shows we will be in a recession in the next 12-24 months. I know many businesses are sweating about the tariffs on chinese goods. I have seen local level and national level "fat cutting" lately.

As for Disney, they are focusing heavily on DVC (which gets a huge chunk of money-is it $18k?- in their pockets at time of purchase, plus generates an annual cash flow, and sells tickets because hey, if you're at a dvc resort, may as well go to the parks), they've raised prices on merchandise (Mickey ears went up something like 12%), raised ticket prices, added more cash generating extras, I could go on. Meanwhile, they've focused on cutting the freebies. I really think they are seeing the writing on the wall and preparing for the slowdown (which I would happily welcome, this inflation is going to break me!). I know these are the things I would be doing, if I knew things were about to take a downturn.

 

[MickeyMinnieMom]

There is a lot of research and evidence that shows we will be in a recession in the next 12-24 months. I know many businesses are sweating about the tariffs on chinese goods. I have seen local level and national level "fat cutting" lately.

As for Disney, they are focusing heavily on DVC (which gets a huge chunk of money-is it $18k?- in their pockets at time of purchase, plus generates an annual cash flow, and sells tickets because hey, if you're at a dvc resort, may as well go to the parks), they've raised prices on merchandise (Mickey ears went up something like 12%), raised ticket prices, added more cash generating extras, I could go on. Meanwhile, they've focused on cutting the freebies. I really think they are seeing the writing on the wall and preparing for the slowdown (which I would happily welcome, this inflation is going to break me!). I know these are the things I would be doing, if I knew things were about to take a downturn.

I do know about the general macro things being discussed. Fat cutting is good practice, IMO -- expected downturn or not. I guess I just don't necessarily see a connection this time, but who knows?

 

[rteetz]

Honestly, the character cutbacks are getting out of hand. We still don't have a new mayor on main street and now they are cutting the entertainment in DHS? Such a shame since this is one of the things Disney does that is above and beyond what others are doing. It used to be all about the details. Now, it is all about the money.

The mayor is a bit of a touchy one. They may be waiting a while to replace that one because it was a death.

 

[rteetz]

I do know about the general macro things being discussed. Fat cutting is good practice, IMO -- expected downturn or not. I guess I just don't necessarily see a connection this time, but who knows?

I don’t consider this fat cutting though. Fat cutting would be getting rid of some of the unnecessary managerial positions Disney has (they have a weird system). I know I keep bringing up the citizens of Hollywood but to me why not just get rid of all of them? If they are looking to save money that would save even more. Cutting 4 of them changes their storyline.

Rafikis is a weird one too. The train won’t be operated so I guess that saves costs but all the CMs have been given a place elsewhere. Sure some might have less hours but they aren’t out of a job by any means. The building stays too due to the offices and animal hospital. So really the only cost savings is operating the train.

 

[MickeyMinnieMom]

I don’t consider this fat cutting though. Fat cutting would be getting rid of some of the unnecessary managerial positions Disney has (they have a weird system). I know I keep bringing up the citizens of Hollywood but to me why not just get rid of all of them? If they are looking to save money that would save even more. Cutting 4 of them changes their storyline.

Rafikis is a weird one too. The train won’t be operated so I guess that saves costs but all the CMs have been given a place elsewhere. Sure some might have less hours but they aren’t out of a job by any means. The building stays too due to the offices and animal hospital. So really the only cost savings is operating the train.

Fat is in the eye of the beholder.

Don't know that I would necessarily call them all "fat", but I do think the cuts so far are things that will not impact satisfaction for the vast majority of guests. I know that I've gone down the list and taken them one by one and given my two cents in other threads, so I won't repeat here. You're welcome.

 

[Happyinwonerland]

I don’t consider this fat cutting though. Fat cutting would be getting rid of some of the unnecessary managerial positions Disney has (they have a weird system). I know I keep bringing up the citizens of Hollywood but to me why not just get rid of all of them? If they are looking to save money that would save even more. Cutting 4 of them changes their storyline.

Rafikis is a weird one too. The train won’t be operated so I guess that saves costs but all the CMs have been given a place elsewhere. Sure some might have less hours but they aren’t out of a job by any means. The building stays too due to the offices and animal hospital. So really the only cost savings is operating the train.

Cutting some of the actors for citizens of hollywood still keeps the experience there, so guests don't shout "OMG they took away even MORE entertainment!", while saving a little money.

Rafikis will save them considerable money. The CMs that are being moved elsewhere- now Disney doesn't have to hire people to fill positions where these CMs are being moved. It is much cheaper to retain current talent than to hire and train new employees. With the train not operating, they'll save on that, but they will also save on electritiy by not operating the platforms. They'll also save on electricity at RPW, since they won't be using as many parts of the building and there won't be as many bodies heating the place. They will save on landscaping-no guests means they can let it grow. No more free strollers and wheelchairs to maintain. I'd bet the petting zoo animals and other exhibits will eventually find new homes or they will live out their natural lives and not be replaced. They no longer have to stock or staff the (likely) money -losing gift shop at RPW, no more handwashing station, no staff needed to wander around the letting zoo to educate guests.

They are trying cut back in ways that won't be so obvious to guests. All of their minor cuts will add up to some pretty major savings. The number crunchers are crunching away.

 

[rteetz]

Cutting some of the actors for citizens of hollywood still keeps the experience there, so guests don't shout "OMG they took away even MORE entertainment!", while saving a little money.

Rafikis will save them considerable money. The CMs that are being moved elsewhere- now Disney doesn't have to hire people to fill positions where these CMs are being moved. It is much cheaper to retain current talent than to hire and train new employees. With the train not operating, they'll save on that, but they will also save on electritiy by not operating the platforms. They'll also save on electricity at RPW, since they won't be using as many parts of the building and there won't be as many bodies heating the place. They will save on landscaping-no guests means they can let it grow. No more free strollers and wheelchairs to maintain. I'd bet the petting zoo animals and other exhibits will eventually find new homes or they will live out their natural lives and not be replaced. They no longer have to stock or staff the (likely) money -losing gift shop at RPW, no more handwashing station, no staff needed to wander around the letting zoo to educate guests.

They are trying cut back in ways that won't be so obvious to guests. All of their minor cuts will add up to some pretty major savings. The number crunchers are crunching away.

I don't think there would be much more outrage if they got rid of all of them vs. 4 of them. I would rather them just get rid of them all than just take away a few at a time.

They really won't save any money on electricity for RPW the animal hospital is still in the main part of the building and is used every day. The train stations sure but I can't imagine that money saved on electricity is much if anything in the grand scheme of things. RPW will also still be used for special events when they want. So no "letting it grow". I really don't think this closing is saving them all that much in the grad scheme of park operations. I am thinking big picture not little area in AK picture.

 

[mshanson3121]

There is a lot of research and evidence that shows we will be in a recession in the next 12-24 months.

While I don't follow too closely, I have heard similar numbers.

 

[mshanson3121]

Fat is in the eye of the beholder.

Don't know that I would necessarily call them all "fat", but I do think the cuts so far are things that will not impact satisfaction for the vast majority of guests.

Cutting some of the actors for citizens of hollywood still keeps the experience there, so guests don't shout "OMG they took away even MORE entertainment!", while saving a little money.

They are trying cut back in ways that won't be so obvious to guests. All of their minor cuts will add up to some pretty major savings. The number crunchers are crunching away.

This is what I think. I think they know they need to be careful right now. That if they cut anything too noticeable, there's going to be considerable backlash, given the ticket price increases, ticket restructuring, cutting services in favor of paid ones etc... So they're cutting as many "minor" things as possible, hoping people won't notice.

 

[snappy]

Death by a thousand cuts

 

[jknezek]

I don't think there would be much more outrage if they got rid of all of them vs. 4 of them. I would rather them just get rid of them all than just take away a few at a time.

They really won't save any money on electricity for RPW the animal hospital is still in the main part of the building and is used every day. The train stations sure but I can't imagine that money saved on electricity is much if anything in the grand scheme of things. RPW will also still be used for special events when they want. So no "letting it grow". I really don't think this closing is saving them all that much in the grad scheme of park operations. I am thinking big picture not little area in AK picture.

I think the most likely answer to all of this is each park was tasked with cutting a certain percentage of costs as part of a larger cost cutting number within the Parks sector. Each park does the minimum and most effective costs they can come up with to reach, but not exceed that required number. Cutting Rafikis, which is probably the least attended area of AK, makes sense. It wasn't enough, because as RTeetz points out there isn't much there, so they also cut a few performers from ROL. Similarly, DHS met their quota with a few of the Citizens, but they didn't need to cut them all to make the number so they didn't. I expect there are other cuts that are less obvious that were done as well and just not announced. I also expect both EPCOT and MK had their share as well, and it will probably show up in reduced ride staffing during the slow months, reduced restaurant and gift shop staffing, etc. For MK, that makes sense since there are so many rides, slowing them down still leaves alternatives. For AK and DHS, cutting ride staff is less of an option because there are so few to begin with, so the cuts show up in other areas.

 

[snappy]

I imagine there are a host of behind the scene cuts.

 

[BrianL]

I do know about the general macro things being discussed. Fat cutting is good practice, IMO -- expected downturn or not. I guess I just don't necessarily see a connection this time, but who knows?

I agree with you here. Not just anyone can be the Mayor of Main Street. They need to find someone who can continue George Weaver's legacy and bring the warmth and fun that he brought to the position. They may even need to hold an election, at least amongst the cast of Main Street when the time comes.

As I've said, cutting a character isn't a big deal. They come and go. The RoL show is being gutted though and they may as well just close it if that's the deal.

 

[dwheaton]

I can understand that Disney needs to rein in operating costs, especially given that occupancy and crowds have not been high in the summer and going into the fall. They also are investing a lot in expansions like Galaxy's Edge plus the huge attractions at Epcot and The Magic Kingdom. With that said, some of the changes feel short-sighted and could only compound the issues Disney is facing with higher prices and reduced guest satisfaction. I don't mean to be alarmist, but there's a lot of dissension among fans over the past few years. Disney will likely be fine and will do great with Galaxy's Edge obviously, but they are being risky with a strategy for the next year given the changes.