Disney Buyouts suggest low revenues for 2009
Iger boasted about the resilency of his company in 2008 at various interviews but it turns out Disney will be reporting a decline much lower than 2% as originally intended in Nov.
Can you imagine, Disney will offer 619 buyouts to executives after Iger was offered $30.6 million compensation package including $25 million in stock options? Whats wrong with this picture?
True, we are seeing a declining economy, but could Disney be hoping that it's voluntary separation plan will help avoid layoffs of some of its 62k person workforce. How could an individual receiving that much compansation be at peace when so many are suffering?
Unfortunately, Disney will resort to some layoffs because its not easy to obtain employment during these hard times. I guess Jayne Parker, senior vice president of human resources will not be losing any sleep because she is not on the severance list.
Even though Disney just raise prices for a 1 day base to just under $80, consumer spending was blamed for lower revenues in from last year. Analyst from Morgan Stanley believe Disney's revenues will drop below 7% this year. Disney indicates that it wants to manage it's business more productively but won't cut costs on it's park passes.
Buyouts depending on length of service & pensions are designed to increase savings for the fiscal year of 2009. Over 300 executives at the Vacation Club & Cruise Line were employed in Orlando.
Disney's imagineers located in California were offered 192 buyouts while 91 were offered at Disney Anaheim theme parks to director-level and above. It's hard to imagine that only a week after the revelation of Chief Executive Officer Iger's compensation package, buyouts were announced.
Cost cutting measures have been taken across the company during the last few month and questions are being raised whether Disney will sell off some assets. Reduced showings at Disney's Hollywood Studios, eliminations of character dining, and the cancellation of Pocahontas & Her Forest Friends are all tell-tale signs of some liquidations in the months to come.
In an attempt to entice clients to purchase vacations packages which include 4 nights & 3 free at a Walt Disney Resort, 7 day base passes, and $200 gift card have all been unsuccessful in the last few months. Imagine on the same day as these promotions were announced Disney reported a 16% decline in the fiscal fourth-quarter from a year ago.
Morgan Stanely and other analyst were skeptical that Disney would weather the recession and reduced their earnings estimate from $2.05 to $1.92 per share.
ABC televions sales have also taken a beating due to weaken consumer spending as well as the long-time cash cow ESPN. Hopefully, Disney will have the moral fortitude not to layoff large numbers from it's 62,000 workforce nationwide. Anecdotal reports have reached the ears of Local Union 362 regarding reduced hours for many employees.
I guess it's a small world after all.
Can you imagine, Disney will offer 619 buyouts to executives after Iger was offered $30.6 million compensation package including $25 million in stock options? Whats wrong with this picture?
True, we are seeing a declining economy, but could Disney be hoping that it's voluntary separation plan will help avoid layoffs of some of its 62k person workforce. How could an individual receiving that much compansation be at peace when so many are suffering?
Unfortunately, Disney will resort to some layoffs because its not easy to obtain employment during these hard times. I guess Jayne Parker, senior vice president of human resources will not be losing any sleep because she is not on the severance list.
Even though Disney just raise prices for a 1 day base to just under $80, consumer spending was blamed for lower revenues in from last year. Analyst from Morgan Stanley believe Disney's revenues will drop below 7% this year. Disney indicates that it wants to manage it's business more productively but won't cut costs on it's park passes.
Buyouts depending on length of service & pensions are designed to increase savings for the fiscal year of 2009. Over 300 executives at the Vacation Club & Cruise Line were employed in Orlando.
Disney's imagineers located in California were offered 192 buyouts while 91 were offered at Disney Anaheim theme parks to director-level and above. It's hard to imagine that only a week after the revelation of Chief Executive Officer Iger's compensation package, buyouts were announced.
Cost cutting measures have been taken across the company during the last few month and questions are being raised whether Disney will sell off some assets. Reduced showings at Disney's Hollywood Studios, eliminations of character dining, and the cancellation of Pocahontas & Her Forest Friends are all tell-tale signs of some liquidations in the months to come.
In an attempt to entice clients to purchase vacations packages which include 4 nights & 3 free at a Walt Disney Resort, 7 day base passes, and $200 gift card have all been unsuccessful in the last few months. Imagine on the same day as these promotions were announced Disney reported a 16% decline in the fiscal fourth-quarter from a year ago.
Morgan Stanely and other analyst were skeptical that Disney would weather the recession and reduced their earnings estimate from $2.05 to $1.92 per share.
ABC televions sales have also taken a beating due to weaken consumer spending as well as the long-time cash cow ESPN. Hopefully, Disney will have the moral fortitude not to layoff large numbers from it's 62,000 workforce nationwide. Anecdotal reports have reached the ears of Local Union 362 regarding reduced hours for many employees.
I guess it's a small world after all.
posted by michael at
12:16 PM
