So why is Disney CEO Bob Iger talking about adding 13,000 jobs at the Walt Disney World Resort while Disney is cutting 7,000 positions?
Disney is huge. Really, really huge. So huge that one side of the company can be stuck in the mud while another division is flying high. That's the case right now with Disney. Its streaming services are losing money almost as fast as its wildly successful theme parks can make it.
Bottom lines across Hollywood (and never forget that Disney is a big player in Hollywood) look like a crime scene right now, with red ink everywhere as companies have been trying to buy market dominance in streaming. Disney+ has done better than others, but still remain far from profitability.
With a writers' strike looming - and residuals for streaming a huge issue driving the talks - studios are bracing for expenses associated with running streaming services to grow. That threatens to deepen the red ink, and patience for continued losses has run out. Everyone is looking to cut now, and Disney is no exception.
That's why Disney is reorganizing departments, combining business units and cutting projects. Disney also is facing a deadline to either buy rival NBCUniversal's 33% stake in Hulu or spin off the streaming service. If Disney buys full ownership of Hulu, that would be another big expense for the company - not just to make the purchase but also to assume the full costs of running Hulu going forward.
So Disney management needs to make some very strategic decisions about the company's future when it comes to streaming, theatrical distribution, and over-the-air and cable programming. How can Disney make the most money in those spaces while wasting the least? Spending a ton of money is a given in Hollywood - no paying audience wants to watch something that features bad talent and looks cheap. But no one in the industry wants to spend money that consistently fails to return that investment.
The 4,000 people that Disney is dismissing and the 3,000 open positions that the company will not fill, therefore, lie almost exclusively on the media and management sides of the company. I would be surprised to see Disney go against its word and eliminate front-line theme park cast members as part of this layoff. Theme parks are the part of The Walt Disney Company that's flying high and, as the cliche goes, if it ain't broke....
Now if any of those 4,000 mid- and high-level studio executives in California want to move to Orlando to become housekeepers at Walt Disney World, am I sure that the company would welcome those applications. But exactly zero of those laid-off employees are going to welcome that opportunity. The company's goal here is to take that the money that Disney will save by eliminating 7,000 positions and eventually spend it instead on new productions, new projects, new attractions, new hotels, and new hires that will deliver a better return on investment than those 7,000 jobs were expected to produce.
Note that I said those 7,000 *jobs* instead of 7,000 people. I would not be surprised to see some of those laid-off employees eventually make their way back to the company, in new roles that better fit their abilities to contribute to Disney.
(But not Ike Perlmutter. Many Marvel fans - and quite a few in the Disney C-suite - are happy now to say, "screw that guy.")
Ultimately, Iger went ahead with the layoff while promoting the new jobs in Florida because that's what Wall Street investors want to hear. The masters of cognitive dissonance, big investors love to hear about layoffs (lower costs!) while also welcoming news about new hiring (growing company!). Great CEOs can tell Wall Street all the contradictory stuff that it wants to hear, without anyone with juice on the street ever questioning it. Ultimately, though, even the best CEOs need to deliver the growth that Wall Street demands.
So that's why Disney is talking up new jobs in its theme parks while showing thousands of other cast members the door.
For more theme park, entertainment, and travel news, please sign up for Theme Park Insider's weekly newsletter.
Disney's problem isn't "getting involved in politics," their problem is a year of mediocre movies, performance and reception-wise (Lightyear, Strange World, Thor: Love and Thunder). The only exception was Avatar 2, which ironically is one of the most politically charged pieces of media from the past year.
Lightyear, Strange World and Thor were woke when Avatar was not, political yes but not woke. There is a difference between being woke or being political. Disney is both woke and political and because of it they are a sinking ship.
How is woke different than being "political?" Are only certain political things woke? Is a movie woke if it doesn't do well at the box-office or with critics? Is Black Panther woke? Do the Right Thing? Everything Everywhere All At Once?
According to some film blogs yes, they say the only reason EEAAO won Oscars was "it was so woke." Of course, they don't even know what the term means anymore, people just toss it around like crazy.
It's crazy how people hear one thing and run with it. Although many people ineptly wield the term “woke” as a pejorative for progressives and anti-stances, it is more accurately used to tell black and brown people to be aware of racial subjugation committed by white people. For decades now, it’s been a calling for black/brown people who had been mentally conditioned into philosophical slumber due to centuries of willful intimidation, oppression and miseducation. So yes, the misinformed will shout out “woke” just to utilize it as a political talking point to further their agenda.
I'd love to hear your explanation of how those movies were woke though. Lol
Don’t know about Everything, Everywhere (didn’t see it yet), but the Oscars are definitely woke. I know, surprise surprise it’s Hollywood. But according to the Academy’s new inclusionary rules, a film studio cannot receive nominations for new films unless their film productions hire their staff by the color of their skin. Really? Come on, man/ma’am/them!
@keith I was looking for how, per your post "Lightyear, Strange World and Thor" were woke films?
The academy has imposed those inclusive rules for only one category. If you truly wish to learn why, to avoid skepticism, you might want to check out The Annenberg Inclusion Initiative at USC which has done great work exploring, documenting and studying the lack of diversity in Hollywood. You know, they wouldn't have to create inclusive rules to hire and work with a percentage of people based on their ethical backgrounds or skin color if sid individuals weren't overlooked because of it.
How, by any definition of the word, pejorative or otherwise, is Thor woke? Because I’m getting really confused. I also can’t believe that I typed that question. Didn’t even crack the top 100 list of weird questions I had for the day.
But it’s Hollywood, aren’t they all inclusive? And if not, combating racism with racism should be the route they take?
As for Lightyear, Strange World, and Thor: Love and Thunder (try and keep up fattyackin), those movies are woke because they purposely emasculated men and forced diversity, equity and inclusion into their movies for no other logical reason or benefit than to push DEI.
What does woke mean?
@Keith:
When is said Thor without the full title I assumed you’d understand the reference, as I was merely following your lead after all (“Lightyear, Strange World and Thor”). Nobody here has any problem keeping up with your diatribes, believe me. I think that, speaking for many, I have trouble keeping up with the ill-defined logic and vagaries of what and when you consider something or someone to be considered “woke”. For such a strong stance to be taken on your part regarding the word, its meaning and usage seems to still wade ever so aimlessly in between either side of the aisle. But then the middle ground isn’t novel, eh?
Grant, in reality "Woke" is the opposite of comatose, unconscious, out of it. In its current usage as promoted by far right propagandists and parroted by white supremacists, it means nothing. Its basically a buzz term like CRT and SJW, a trigger noise used to rile up white people and convince them to vote against their own economic self interests. Its a distraction, a parlor trick, but these created crises have proven to be extremely successful when directed at certain types.
Zarex is speaking the truth right now
Also Ike Perlmutter is a horrible person and I am incredibly glad he is no longer with the Walt Disney Company.
fattyackin and Zarex, you’re both not liberal, are you? It’s known that most whom frequent or at least comment on TPI are, including our esteemed editor, but with both of you I can’t tell.
Woke is a term in the black community to being “awake” to racial injustices.
It’s mostly now just used pejoratively by whites who are telling on their own racism.
jpb1703, did you know Ike? What was he like, really?
So many white supremacists, racists and propagandists in the world today it’s ridiculous! And Communists! Oh, and Nazis too!
Keith, I consider myself to be a moderate.
Zarex, you may consider yourself a moderate, but you’re rhetoric is pretty extreme. Propagandists and white supremacists, really?
I calls em as I sees em. I wouldn't use extreme rhetoric if it were not needed to accurately describe what is going on in this country.
Zarex, you’ve been all over this country? What’s it like, really? Is it as racist and homophobic as they say?
@ Keith, u can look towards states sculpting and having legislation such as Tennessee's drag ban or Florida's (and soon other states) passing anti-education laws that censor and target Black history, books and authors to answer your last question. And no, Hollywood is not ALL inclusive, per the reasoning of the inclusionary which you referenced but failed to research on because your comfortable with that narrative you sit in. Your analogy of "combating racism to racism" is piss to poor. Try combating racism with inclusiveness. (Revert back to my previous post on The Anneberg Inclusin Initiative) You have no comment on the cause of the inclusionary rules, being overlooked because of their racial and gender identity, just the effect. Sounds like escapism to me. As far as those movies you mentioned being "woke", its best to stay away from words if you don't know how to correctly reference and define them.
Be weary of those who foreshadow inclusivity being a problem.
Woke, as it stands today, is the active promotion of identity-based social justice issues that directly counter perceived insensitivity against progressive ideology. My representation of the term is on point.
Be weary of those who foreshadow mandates being a solution.
Keith, your definition is a smidge off. Woke is awareness of racial discrimination and prejudice, not a call to implement any specific policy. That was added by far right propagandists as a scare tactic directed at those who are susceptible to this kind of manipulation.
And do you honestly believe the Mouse is mandating diversity for altruistic purposes? Disney and other companies are doing it to enhance their bottom line. They have found that movies and TV shows that appeal to a broader audience make more money. Don’t think of it as a woke corporation engaging in white replacement, but a greedy company trying to get as many eyeballs as possible on its product.
Searching the internet articles for the definition are you? (Lol) Your still off, but now I know it's on purpose.
Your perception is not always the truth and neither is mine, but look at the individuals today that proclaim themselves as woke and you’ll find that the definition I provided is spot on.
sxcymike, you’re about as 2-dimensional as they come, a polarized cardboard cutout of someone “in the know”. You can do better than that, can’t you?
Yet that is the point, individuals not part of that community or those who are grossly misinformed, fabricating rhetoric to align it with what they want it to be outside of what it is. I'll leave it at that.
Not fabricating but reading the terrain and reacting appropriately. You can be less polarizing, yes?
Zarex, you’re so off target you couldn’t hit water if you fell out of a boat. Reevaluate yourself.
Not sure who hurt you Keith, but it does get better.
Keith, I do have to admit it’s kind of cute watching you throw the word “woke” around like a cat playing with a toy.
Of course it’s not a perfect comparison because I’m pretty sure the cat has at least a minimum idea what it’s actually doing, whereas you’re just mindlessly spouting the word with absolutely no ability to comprehend what it means.
Schnieeder sure doth protest - makes one wonder ….
Alright, I understand I’ve been overly aggressive. Please allow me to walk back the confrontational rhetoric a little bit and maybe we can find some common ground. Believe it or not, I’m not a far-right conservative. But when it comes to our youth, I strongly disapprove of certain things that we have allowed them to be exposed to with very little action done on our part to prevent. I recognize that this is a theme park enthusiasts website, but does anyone know what the #1 leading cause of death is among our children in the US, and no it’s not car accidents?
That would be gun deaths. Interestingly not an issue amongst any other developed country, most of whom have far more progressive cultures than the US.
Wrong grant, the correct answer is abortion, over 900,000 reported murders in 2022. Let’s discuss.
Wrong Keith. A child is defined as "a young person especially between infancy and puberty" or "between birth and puberty" depending which dictionary you look at. Legally speaking this is supported. No child has ever died from abortion.
Take you Fox propaganda talking points elsewhere.
Keep telling yourself that, grant. Over 73 million children murdered worldwide in 2022 by abortion.
Just want to get one last comment in before Robert closes them on this article.
WOKE! WOKE! WOKE!
Abortion is murder!
Disney sucks! TRON is awesome!
The truth is that in the overwhelming majority of cases the folks who shed crocodile tears about aborted fetuses don't give a tinker's damn about dead children. We've seen over and over again during the pandemic and after school shootings that those on the far right are perfectly fine with a robust child coffin manufacturing industry. It is also telling that the red states with the most restrictions on abortions often have the highest infant mortality rates. They simply wuv widdle pwe bown babies! But after they emerge from the birth canal those lovers of life completely lose interest.
The reason is they simply don't care about whether or not your little Caitlin, Katelynn or Caitlyn dies. Its about pathetic "men" and their enablers trying to gain the control back over women's bodies they used to have back in "the good old days". This is and always has been about stripping body autonomy away from women.
...Wasn't this conversation about theme parks?
Apparently, neither the left nor the right care about children - it’s either murder by abortion or murder by guns. And neither side wants to give up their means to which they murder children. Why?
Zarex, I’ve heard that one-sided joke before. Don’t you have any new material?
Maybe we can change the topic to climate change and if it really exists?
This article has been archived and is no longer accepting comments.
Ike Perlmutter was right, Disney never should have gotten involved in politics. Disney will get hurt, more than they are now.
BTW, Perlmutter is still one of Disney’s biggest shareholders (approximately 30 million shares). Disney better be prepared when he sells that stock off.