Disney CEO Bob Iger Announces Workforce Reduction of 7,000 Jobs

Posted on by Mathew Corn Uncategorized

At 4:30 p.m. Eastern on Wednesday, the Walt Disney Company broadcasted a live audio earnings call, during which the first fiscal quarter of the 2023 fiscal year was discussed.

During this call, CEO Bob Iger revealed that the Walt Disney Company would experience a workforce reduction of 7,000 jobs, despite earnings that exceeded Wall Street’s expectations.

A reduction of this size effectively removes a little over 3% of the Walt Disney Company’s entire workforce (which consists of approximately 220,000 as of 2022). This massive workforce reduction is in an attempt to cut costs.

To put it plainly, Disney CEO Bob Iger has announced that 7,000 jobs will be cut in order to save billions of dollars. Specifically, the Walt Disney Company is attempting to earn cost savings of $5.5 billion. Of that $5.5 billion, it’s been confirmed that $2.5 billion are being allocated into “non-content costs,” according to Bob Iger. At this time, that’s as specific as the Walt Disney Company has been regarding the “non-content costs” themselves.

Immediately after making the announcement, Disney CEO Bob Iger claimed he did not make the decision to lay off 7,000 employees lightly, saying, “I have enormous respect and appreciation for the dedication of our employees worldwide.”

At this time, we are unsure which branch will be affected by the massive number of job cuts. However, in the fall of 2022, former Disney CEO Bob Chapek had also announced job cuts and had even hinted that more would be coming in the future. It seems that Bob Iger confirmed this during Wednesday’s earnings call.

Bob Iger and Bob Chapek

Although we are unsure of which departments of the Walt Disney Company will take the hardest hits as far as workforce reductions go, we do know that Bob Iger is focused on reorganizing the company into three specific segments: two different entertainment units (one focusing on streaming, film, and TV, and one ESPN segment focused on sports), and one unit focused on Disney Parks, Experiences, and Products.

Union Cast Members Respond to Disney’s Offer

Posted on by Mathew Corn Disney Dining, Disney Parks, Disney Resorts, Uncategorized

Disney and the Union that represents most Cast Members (STCU) have been at odds since last October. The Union argues that Cast Members deserve $20 per hour. Disney has said “ok, but not yet” and offered a raise of $1 per hour each year until they get to $20 per hour. The Union, which represents more than 32,000 Cast Members, has expressed its displeasure in the offer but the final decision ultimately rested in the hands of the Cast Members they represent.

It seems as though they spoken. In a recent vote, Disney Cast Members have overwhelmingly (96%) rejected Disney’s latest offer. Matt Hollis, president of the Service Trades Council Union, said “Disney can do better and must do better.” Currently starting pay for Disney workers is $15 per hour, $4 above Florida’s minimum wage.

Union Disney negotiations

Disney responded to the vote in question statement saying, “it was a strong offer that would provide more than 30,000 employees a nearly 10 percent on average raise immediately, as well as retroactive increased pay in their paychecks, and we are disappointed that those increases will now be delayed.” Disney made an operating profit of $12 billion dollars last year.

The Unions argue Disney should have offered a $3 per hour increase, raising most wages to $18 per hour with a $1 per hour increase annually over the next two years. The STCU has already successfully negotiated this same deal for employees at the Orange County Convention Center.

Disney union negotiations

Negotiations between Disney and the Union will resume again soon. Until then, many have worried that the Cast Members could decide to strike in order to force Disney’s hand. This is unlikely. Since the Union contract expired in October, the contract between the Union and Walt Disney World has been month to month with specific clauses that prevent striking. To do so would be breach of contract and possibly result in job loss and stall negotiations.

The Union could decide not to renew their month to month agreement in order to strike but this is also unlikely. Even if they did do this, members of the union (Disney Cast Members) would still need to vote to approve a strike. It seems unlikely many Cast Members would vote for a move that meant they’d go without pay for an extended period of time. It is possible though that a strike could happen. This would be catastrophic for Disney’s operations since the Union members encompass ride operators, costumed performers, housekeepers, restaurant and shop employees, bus drivers, as well as custodians.

Stay tuned. This is an ongoing story and we will be sure to bring you updates as they happen. We expect negotiations to resume within the month.

The Disney Corporate Shakeup Continues: Chairman Arnold Out, Nike Exec In

Posted on by Mathew Corn Disney Parks, Uncategorized

After Disney fired CEO Bob Chapek and replaced him with his predecessor Bob Iger, everyone knew change was coming. In the days and weeks that followed, heads continued to roll at the Walt Disney Company. Things have slowed down but the Disney corporate shakeup is far from over. Today Disney rejected pressure to install activist investor Nelson Peltz as Chairman of the Board and instead tapped Nike Executive Chairman Mark Parker instead.

This news comes in the wake of current Disney Chair Susan Arnold’s announcement that she will be stepping down from the role. Arnold has held the position since Iger stepped away from the company in 2021 (in fact, she was the one who asked him to return). Disney has made it clear that she has not been fired, and that her departure is “consistent with Disney’s 15-year board term limit.”

Mark Parker

In a statement following the announcement, Bob Iger said, “Mark Parker’s vision, incredible depth of experience and wise counsel have been invaluable to Disney, and I look forward to continuing working with him in his new role, along with our other directors, as we chart the future course for this amazing company.”

Iger also acknowledged Susan Arnold in his statement saying,“On behalf of my fellow Board members and the entire Disney management team, I also want to thank Susan for her superb leadership as Chairman and for her tireless work over the past 15 years as an exemplary steward of the Disney brand.”

Mark Parker has worked for Nike since 1979 In various roles including product research, design and development, marketing and brand management. This, like other recent announcements, is a hopeful step in the right direction for the Walt Disney Company. In recent years the Board of Executives lacked creatives leading to a stagnation that caused the company’s recent implosion.

In addition to his position as Chairman of the Board, he will also be tasked with a “succession planning” committee dedicated to advising the board on the status of CEO succession planning. This comes as a stipulation of Iger’s return as CEO for a two year period in order to find a suitable replacement.

The snubbing of Nelson Peltz is not surprising given his investment firm, Trian, openly opposed Bob Iger’s return as CEO. Nevertheless the firm invested an $800 million stake in Disney and immediately began campaigning for a seat on the board. Trian said they aimed to reduce costs and improve operations. It remains to be seen whether they will be successful at placing a member on the board but it won’t be as Chairman of the Board.

Iger Reveals Surprising New Policy for Cast Members

Posted on by Mathew Corn Disney Parks, Uncategorized

In a new email to Disney Cast Members, Iger is continuing the company’s reorganization.

The Walt Disney Company CEO, Robert Iger arrives for the World premiere of Marvel Studios’ “Avengers: Endgame” at the Los Angeles Convention Center on April 22, 2019 in Los Angeles. (Photo by VALERIE MACON / AFP) (Photo credit should read VALERIE MACON/AFP via Getty Images)

The recently returned Disney CEO Bob Iger took the helm a couple of months ago, with quick shakeups in the company, particularly in the Media & Entertainment Distribution division, which is responsible for Disney+. Disney Executives, including Chapek’s right-hand man, Kareem Daniel, and Arthur Bochner, Chapek’s Chief of Staff and Speech Writer, have left the company.

Bob Iger has diagnosed The Walt Disney Company’s downfall as it was “losing its soul.” Iger himself has said the Disney Parks are too expensive and knows that change needs to be made.

Bob Iger in front of Cinderella Castle

Now, Iger continues on his journey to bring back the magic for the stock dipping company. According to a report, Bob Iger shared the importance of in-person collaboration in an email sent to hybrid Cast Members on Monday, January 9, 2023. The email states:

“As I’ve been meeting with teams throughout the company over the past few months, I’ve been reminded of the tremendous value in being together with the people you work with,” Iger wrote. “As you’ve heard me say many times, creativity is the heart and soul of who we are and what we do at Disney. And in a creative business like ours, nothing can replace the ability to connect, observe, and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors.”

The report goes on to note that starting the week of March 1, 2023, hybrid employees must return to corporate offices four days a week.

The Walt Disney Company

Hybrid employees, or work-from-home staff, increased among companies around the globe in 2020 when the COVID-19 pandemic spread. Now, years later, Iger is bringing Disney employees back to the office with this new policy.

While this decision will likely have mixed emotions from Disney’s current hybrid Cast Members, Disney isn’t the only one making this shift in policy. We’ve seen other large companies, such as Twitter and Apple, mandate their employees to return to in-house office time.

James Cameron Calls Partnership With Disney “An Arranged Marriage”

Posted on by Mathew Corn Uncategorized

Director James Cameron recently opened up.candidly about what he calls an “arranged marriage” with Disney.  The ‘Avatar’ Director has been daunted in the past, no one expected ‘Titanic, to be a success and it ended up becoming the highest grossing ever, (you’re welcome, Mr. Cameron. As a 7th grade girl full of …whatever 7th grade girls are full of…I saw it in theaters 8 times).  The film held that title for over a decade.  Then along came Avatar and smashed ‘Titanic’s’ record in 2009. ‘Avatar’, of course, is another James Cameron masterpiece.  It holds that title to this day, but he’s hoping (with Disney’s help) to unseat that achievement and blow past it with ‘Avatar: The Way of Water‘. 

Cameron made ‘Avatar’ for Fox in 2009. Before the sequel was filmed, Disney had bought Fox which put the director directly in the hands of the Mouse. How did he feel about that? Positive…for the most part.

“We sort of were led to believe that the ‘Avatar’ overall was one of the jewels in the crown of what Disney was acquiring, so we expected them to be leaning forward and wanting to see what we were all about,” says Cameron. “They were excited by the potential of the new films, especially as it was planned out to be a series of films, a saga over time played out in four movies.”

Cameron excitedly went to work with Disney. In a recent interview he said, “They knew exactly what they were buying on paper, but they didn’t really know us as a production company, and they didn’t really have the really granular ins and outs of how an ‘Avatar’ movie gets made.” So he invited Disney executives on set and was transparent with them about everything that was happening. They developed a good working relationship.  

Then Bob Iger left the company and the director was subject to the creative direction (or lack thereof) of Bob Chapek. “Of course, we were always curious about what the new emphasis would be, and whether we’d get caught in the vortex of Disney+ and talking about shortening windows and all that sort of thing,” he said referring to the extremely short length of time Disney has allowed movies to run exclusively in theaters before sending them to Disney+. This, in Cameron’s eyes, would’ve been disastrous for the film because due to budget overruns, the film needs repeat theatrical views to be a success.

Luckily, by the time ‘Avatar: The Way of Water’ debuted, Iger was back on top. “I don’t want to overplay it, but [Iger and I] always sort of saw eye to eye, so we’re definitely pretty happy with the way things are working out right now,” he states. “For an arranged marriage, I would say it has gone about as well as you could conceivably ask for.” 

The film is currently smashing records but not yet where it needs to be. The film currently has grossed $1.5 billion worldwide, which is no small chunk of change but considering the fact that it had a $2 billion budget, it’s still got a long way to go. You can see ‘Avatar: The Way of Water’ in theaters now.