Exclusive: Disney looks for cost savings, ponders layoffs - sources

Comments (46)
tmc wrote:

And some think that giving big corporations more money will mean more jobs. What fools.

Jan 07, 2013 7:00am EST  --  Report as abuse
americanguy wrote:

Record profits so they want to lay people off for more profits?
There is the problem with America and why we are in a depression and will stay there, until we tax the manure out of corporate profits and the wealthy.
When you give the wealthy tax breaks up front, they will do anything for more money. It is not just Disney, corporations are sitting on trillions of dollars of cash they will not spend on anything because the people who run them are pigs.

Jan 07, 2013 7:22am EST  --  Report as abuse
Bobo_9 wrote:

I’m a fiscal conservative & have no problem with companies wanting to make more money, but we’re way out of whack here.
The more layoffs these big companies make in order to wring out a few more dollars profit (by cutting low level wage earners most of the time) means fewer people can afford to go to their parks & buy stuff. We need people working & earning money so they can spend at their own discretion which amazingly is what gets the economy going.

Jan 07, 2013 8:50am EST  --  Report as abuse
justinolcb wrote:

wait – does Obama know this? Maybe Fantasy Land erra, Washington could take some lessons about running things –

btw tmc it’s because Mr Obama is forcing big buiness to pay, pay, pay that this is happening. Obamacare for your staff isnt free – costs went up 20% 2 years before Obama care was finanly shoved down our throats, now it’s even higher if you haven’t paid your premium lately (just for one reason that big businesses would want to lay off in mass)

Jan 07, 2013 9:33am EST  --  Report as abuse
sjfella wrote:

Disney; land of plastic smiles and robot waves. I’ve been boycotting them for years.

Jan 07, 2013 9:47am EST  --  Report as abuse
GA_Chris wrote:

@ Bobo… I agree completely… the idea of low taxes and regulation will lead to better wages and increased prosperity for all is being destroyed by actions like this.

We need strong companies, but we need balance as well

Jan 07, 2013 10:21am EST  --  Report as abuse
Overcast451 wrote:

And I thought Disney was gone years ago… they are REALLY gone now.

Jan 07, 2013 10:51am EST  --  Report as abuse
SanPa wrote:

Old Walt must be rolling over in his grave. He made money the old fashioned way, with human creativity. Bookkeeping was on the far end of the hall from where where creativity occurred.

Jan 07, 2013 11:18am EST  --  Report as abuse
americanguy wrote:

“In terms of profit margin, Disney’s studio is the least profitable of the entertainment conglomerate’s four major product divisions.
Its fifth division, the interactive unit that creates online games, lost $758 million over the last three years, according to the company’s financial filings.”

And somehow in someone’s mind that becomes “this is all because of Obama and Obama care.”
That’s just plain weird. There should be a question on gun registrations that asks ” do you think Obama causes everything that happens in the world” and if they answer yes, they should not be allowed to own a gun.

Jan 07, 2013 11:45am EST  --  Report as abuse
jrj906202 wrote:

It is their business.They can do whatever they want with employment levels.Unless an employee has a long term contract with the employer,the employer or employee can terminate the employment.Makes sense to me.The bigger picture is that technology is allowing all companies to become more efficient and need less employees.This should be a wake up call to all those Americans who think they don’t need to study and become proficient at, in demand, skills.Too much apathy and laziness among Americans,who think they are living in a country of unlimited wealth.You better wake up.The Asians aren’t sitting still.Their kids are studying harder than most American kids.They deserve and will inherit the wealth.

Jan 07, 2013 12:00pm EST  --  Report as abuse
Curmudgeon wrote:

The time to plan for the future is when business is at its best, not after the crisis hits. Management sees a time coming where business declines, and wants to do something about it while there is plenty of time and resources to do so.

I don’t know the particulars of Disney and I could be off base here, but this could simply be good management at work. Hard to believe, but it’s conceivable. Contrast with the Detroit auto industry, where it took bankrupcy and entirely new management to effect change, at the cost of hundreds of thousands of jobs.

Jan 07, 2013 3:41pm EST  --  Report as abuse
bobw7s6 wrote:

How do you go from record profits to layoffs. This is nothing but corporate greed. That is what is wrong with America now. Companies no longer invest for long term investments but rapid returns and just plain old greed. Our political system allowed this to happen by the laws they changed over the last twenty years. We need to get back to the regulations of the 1960′s and 70′s to get things back on track in the country.

Jan 07, 2013 5:34pm EST  --  Report as abuse
seanisonbass wrote:

Hopefully in their new acquisition, they’ll lay-off Jar Jar Binks. Just sayin’.

Jan 07, 2013 7:11pm EST  --  Report as abuse

Keep the people on the payrolls Disney! After all, our brilliant, magnificent leader, Barrack The One obama says spending IS NOT the problem to the nations economic woes. So Disney, spend away on payroll that is your ticket to regaining the profits you seek. So say the morons currently screwing the nation!

Jan 07, 2013 8:35pm EST  --  Report as abuse
MWalter wrote:

And the libs continue with the lambasting of businesses. Get over it lefties. Companies do not exist to provide jobs, they exist to make as much money as possible – period. I often wonder if the only solution for libs is to “nationalize” each and every industry in the U.S. Of course, with government employees being laid off right and left, even that isn’t the Pollyanish solution they think it will be.

Jan 07, 2013 8:35pm EST  --  Report as abuse
Aaron10 wrote:

WHERE do we find record profits in these companies? MSNBC’s unchecked journalist news about accounting and business they have little to no working knowledge of, and not necessarily through any fault of their own?

Commerce makes educated projections of social trends and plan accordingly, regardless of active(happening – therefor unrealized) profits/losses of the present quarter. This whisper of potential layoffs means that these changes are surfacing out of future (NOT static) commerce. Do not pretend that shareholders/stakeholders/investors (including greedy ones) do not want to see potential growth of wealth quantitatively multiply.

Jan 07, 2013 8:52pm EST  --  Report as abuse
worriedmom wrote:

I am so mad…The Liberal exec. at Disney voted for this. They are responsible for the layoffs! They and Obama..PERIOD! I love you Walt, I know you hated Communists, you would never habve supported this a hole that is dystroying businesses today!!!!!!! And for the tool that asked if Obama is to blame for everything bad happening in America, the answer is YES!!!!! George Bush was…. RIGHT???????? God… I am sick of How Disney’s legacy is being screwed by you freaken Liberals. you have bucked (F) the happest place on earth!!!! and Disney!

Jan 07, 2013 9:02pm EST  --  Report as abuse
JohnGalt7777 wrote:

Right. The government should take, because it can and theft has been so successful in Venezuela, Cuba and Zimbabwe. Or, we could maintain a constitutional republic, which encourages capitalism; the greatest improver of everyone’s standard of living. If only there were some way to encourage asshats with a penchant for theft, to leave the greatest country man has ever known, for one of the aforementioned s***holes

Jan 07, 2013 9:16pm EST  --  Report as abuse
DonLloyd wrote:

Good for Disney. The producers of the world cannot be forced to care for the looters. Disney has the right to lay off employees and produce as much profit as possible. Collectivism is destroying our nation. Dead beat looters need to take care of themselves and stop riding on the coat tails of the producers.

Jan 07, 2013 9:21pm EST  --  Report as abuse
ncpg wrote:

ObamaCare is causing every business to reconsider staffing levels. Thanks Obama!

Jan 07, 2013 9:22pm EST  --  Report as abuse
cek100248 wrote:

I wonder who will get the axe, Huey, Dewey, or Louie?

Jan 07, 2013 9:41pm EST  --  Report as abuse
TheNewWorld wrote:

@americanguy

Since when are businesses opened and operated for the sole purpose of providing and paying for unneeded jobs? I take you do not own a business, and have never been close to someone who does. Paying for unneeded workers is something the government does. If you feel like you can do better, go out and get a business loan and hire as many people as you possibly can. When you are out of business in 6 months, come back here so I can tell you “I told you so”.

There should be a question on voter registrations that asks ” do you think business cause everything that happens in the world” and if they answer yes, they should not be allowed to own a vote.

Jan 07, 2013 11:32pm EST  --  Report as abuse
ss31704 wrote:

So lets tax these corporations more, so they can lay off MORE people and pass the cost to consumers. If you want a strong economy, you have to have a strong private sector, with a large manufacturing base. Policies must be instituted to ENCOURAGE businesses, large and small, to hire and expand plant and equipment.

Jan 07, 2013 11:38pm EST  --  Report as abuse
tbickle wrote:

As an Ex Disney employee – this does not surprise me – this is the worst company I have ever worked for – and by far – they treat their employees poorly. What do you expect from the entertainment industry – Hollywood is part of the blame of all out problems!

Jan 07, 2013 11:42pm EST  --  Report as abuse
Azza9 wrote:

While I find this ethically disturbing. Unfortunately in a free market corporations have the right to do things like this, it’s just one of the many barbs on the free trade rose. But the alternative to a free market does not sound much better.
It’s a choice of; Having the CHANCE at making yourself some wealth or not having that opportunity at all.

Pragmatically it makes fiscal sense to make such cuts, they can’t bleed money all over the place for no reason. You can’t let a company perpetually lose profits, it’s unrealistic and defeats the purpose of business.

Your American (or any X country) dream will forever be be granted to you by your corporate overlords, at their discretion. If you being employed cuts in to the boards dividends weather you are incompetent or not, sorry you are SOL.

You see this is what those misguided goons in the “99%” “occupy” movements were complaining about. They dislike the fact that their livelihoods (if they worked in the first place) are so discretionary and thrown away as soon as margins shrink. They were rebelling against an undeniable cold reality that the rich have us all by the nads and always will (at least if we want to keep 1st world standard of living).

From my observations it seems like most US Republicans are in the mind set of “Cool it pinko! stop whining or they squeeze our nards harder…”. It’s a realistic yet sycophantic stance towards the upper class.

Jan 07, 2013 11:47pm EST  --  Report as abuse
tbickle wrote:

Hey SanPa – you wrote that Old Walt is rolling in his grave? Walt and his brother Roy were the worst culprits of firing and laying off people long, long ago… you have no idea what you are talking about – Walt was a genius I agree with you – but he treated his employees poorly! Look it up – read the facts!

Jan 07, 2013 11:48pm EST  --  Report as abuse
TheNewWorld wrote:

@Azza9

You would have a point if you weren’t free to start a small business of your own. The government should protect from monopolistic or anti-competitive practices. Beyond that, if you can do better, go out and do it. If you chose to be an employee, you choose to be at the mercy of an employer. The employer owes you nothing but the wages and benefits both parties agreed to. If the employer ceases to need your services, than you have to find another employer. The constant 99% whining is nothing more than spoiled Americans thinking that they deserve more. I didn’t see the occupy movement come out and start a new business, a new bank, a new wall street firm. No, they aren’t capable of doing better, they are just capable of crying and whining and blaming other people for their own failure at life.

Jan 08, 2013 12:12am EST  --  Report as abuse
tbickle wrote:

The US of A was built by proud immigrants who came to this country seeking freedom and a chance at living and honoring the American Way! My ancestors came here to become Americans, learn about our great country, learn to speak and write English, and be a useful member of society! I was born and raised in California – 3rd generation – we have lost the once Golden State – it will never be what she once was… Losers and leaches of this state and country – beware – the revolution is coming – the people who care about this great nation will no longer put up with all the losers – DEMS and GOPs – a new dawn is coming – be ready – its sweeping the country – all I can say is be prepared!

Jan 08, 2013 12:52am EST  --  Report as abuse
RadioGuy87 wrote:

Laid off my final 75 workers at the end of the year. Was tired of having to pound money into it. Happy and carefree now. Where do I want to live? Where-ever Obama isn’t.

Jan 08, 2013 12:59am EST  --  Report as abuse
Azza9 wrote:

@TheNewWorld
Your sentiment is just, but how exactly can you “protect” small business and still claim to have a free market?
You’d need some heavy regulation to achieve that and they’d have to be some incorruptible regulators.

Also, how do you know that some of those “99%” didn’t want to or already run a small business? But couldn’t because of the aforementioned anti-competitive practices. They can’t possibly ALL be incapable whiners…

Jan 08, 2013 1:11am EST  --  Report as abuse
leftcoast wrote:

Feel sorry for the workers. No sympathy for the company at all especially when they lobbied Congress to change the copyright laws in 1998, Mickey Mouse Protection Act.

Jan 08, 2013 3:01am EST  --  Report as abuse
USAMark wrote:

Some of you just don’t get it, companies are in business to make money. Investors are real people hopjng to fund their retirements on Disney’s decisions. Companies pay 35% taxes, investors now pay nearly 50% taxes on their dividends. If you want inefficiency and waste look to the government. Private business still know how to run their operations.

Jan 08, 2013 3:33am EST  --  Report as abuse
walfourth wrote:

I wonder how many people actually read the article?

Jan 08, 2013 4:39am EST  --  Report as abuse
walfourth wrote:

This will probably be repeated across the board. I would imagine that much of the production work will go overseas.

Jan 08, 2013 4:47am EST  --  Report as abuse
DanLef100 wrote:

You mean with the Election of Obama, the full implementation of Obamacare, and the Obama increase in taxes that the economy isn’t booming?

Jan 08, 2013 7:56am EST  --  Report as abuse
DanLef100 wrote:

Heck we are in the middle of a huge recovery and you mean businesses are struggling? Well at least the Federal government is recovering and growing.

Jan 08, 2013 7:57am EST  --  Report as abuse
feep wrote:

Yet he and his minions got their bonuses….

Jan 08, 2013 9:32am EST  --  Report as abuse
krpkrpkrp wrote:

“we are in a depression and will stay there, until we tax the manure out of corporate profits and the wealthy.”

There will never be a tax on the wealthy because that would mean taxing the wealth of the likes of the Kennedy’s, the HeinzKerrys, the Pelosis and the rest of the Democrats. They are already wealthy and they want to keep what they have. What they DON’T WANT is that they don’t want ANYONE ELSE to become wealthy, so they restrict the ACCUMULATION OF WEALTH so that everyone else is impeded from being rich like they already are.

We will remain in a depression until Obama leaves the White House – dead or alive.

Jan 08, 2013 10:25am EST  --  Report as abuse
krpkrpkrp wrote:

Liberals think that if a company pays $5,000,000 on inventory and they make a sale for two dollars, that any part of that two dollars that isn’t surrendered over to the government is a “tax break”. Not to be used to pay inventory, but handed over to the government.

And they wonder why no one is hiring.

Jan 08, 2013 10:38am EST  --  Report as abuse
gurgle wrote:

I thought the economy was booming! Can’t everyone afford a $5K Disney vacation now?

Jan 08, 2013 11:17am EST  --  Report as abuse

$430 million for Hollywood through “special expensing rules” to encourage TV and film production in the United States. Producers can expense up to $15 million of costs for their projects.

Thank an Obama voter near you for this give-a-way to big entertainment corporations. Obama insisted on no rate changes – no tax reform, not even to the lowest paid workers to offset his 2% tax hike on increase from letting the “payroll tax holiday” expire. So while you pay higher taxes, and receive a smaller paycheck, Obama protected a number of corporations and industries from having to pay their fair share and number one on his list was his Hollyood pals.

Jan 08, 2013 4:22pm EST  --  Report as abuse
LJonny wrote:

You mean that two hour long commercial for the Disney Parks on Christmas day that they disguise as a “parade” didn’t bring in enough sales?

Jan 08, 2013 4:52pm EST  --  Report as abuse
Dragos111 wrote:

I wondered about those guys in line ahead of me at the unemployment office. One had big ears, the other was wearing a sailor’s jacket and no pants. That last one just seemed goofy!

Jan 08, 2013 6:08pm EST  --  Report as abuse
DontRecall wrote:

“There is the problem with America and why we are in a depression and will stay there, until we . . .” scale back government and remind our elected and appointed rulers that they do NOT have carte blanche to tax, tax, tax, spend and tax. When government learns to limit itself to it’s statutory roles, as defined, specified, and written down in the Constitution, then we might, perhaps, start being a profitable nation once again. Until then, is it any wonder that more and more are “opting out”, refusing to pay by any means possible? And please, don’t spout that nonsense that it is everyone’s duty to pay. Quite the opposite; if you read the historical documents underlying the U.S. establishment of governance, it becomes apparent that defiance is what we are supposed to do. No, sorry. It’s not my responsibility to help you continue sponging off the majority. Hard words, I know, but that’s the way it is.

Jan 08, 2013 6:11pm EST  --  Report as abuse
Azza9 wrote:

@Dragos111

Not sure if making Disney character reference, or actual experience in a dole line…

Jan 08, 2013 6:31pm EST  --  Report as abuse
AnnSmith wrote:

The worse part is, they lay off a lot of people who may have been with the company for a long time, and hire new people who cost more per head to turn the company upside down. They trade in loyal employees for new executives who are unethical, and allow the bad cycle to continue. Being “fiscally responsible” may require a bigger trim from higher up management that normally don’t do the actual work. Maybe start with looking at the VP %?

Jan 09, 2013 12:10am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.