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| Slowdown. (ROBERTO GONZALEZ/ORLANDO SENTINEL) |
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| The gloomy national economy has prompted a hiring freeze at Walt Disney World just as Central Florida's largest employer prepares for hordes of spring visitors. |
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| The action is the clearest signal yet that the region's tourism economy is feeling the effects of a nationwide slowdown that has brought about 400,000 layoffs to corporate America in recent months. It also represents a stark contrast to just a year ago, when Disney and other theme parks were scrambling to recruit workers. |
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| Now, only the most critical positions at Disney will be filled, and only then with approval of top executives, Walt Disney World spokesman Bill Warren confirmed Monday. |
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| The decision affects all departments and jobs, both hourly and salary, within Disney's four theme parks and 17 resorts. Disney World employs 56,000. |
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| "Walt Disney World has put a temporary hold on hiring as it evaluates its response to the slowing economy," Warren said. "We wanted to make sure that we stay on track and that we meet our growth targets." |
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| Disney World President Al Weiss, who ordered the freeze last week, has acknowledged that the company is taking steps to counter softening in bookings for summer and fall. Weiss said Disney World will see modest declines in attendance this year. |
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| David Currie, a professor of economics at Rollins College's Graduate School of Business, said Disney's move is significant for the region. |
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| "It's the largest employer in the Central Florida economy, and if they are saying they are not making new hires right now, let's hopes it's a short-term phenomenon rather than a long-term one," Currie said. |
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| Universal Orlando and SeaWorld Orlando officials said they do not have hiring freezes. However, those companies are likely to follow suit, analysts said. |
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| "Disney is the leader," said Abraham Pizam, professor of tourism at the University of Central Florida. "Universal and SeaWorld will say Disney is pretty smart. They know their business." |
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| Last year, in an effort to lure workers to Disney, the company held a glitzy job fair at Disney-MGM Studios. And two years ago, it offered bonuses of up to $1,000 and sent recruiters as far as Puerto Rico to find workers. |
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| Warren would not say how long the freeze is expected to last or how many positions would be affected. |
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| The action won't affect the opening of Animal Kingdom Lodge next month or the first phase of Pop Century, a value resort, set to open later this year, Warren said. |
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| "We will make the necessary adjustments to make sure that we grow and prosper as a company," he said. |
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| Some analysts said the move makes good fiscal sense. |
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| "Manpower management is clearly one of the best tools they have to match consumer demand with corporate economics," said Jeffrey Logsdon, an analyst with Gerard Klauer Mattison. "I would say that until you get a better sense of what attendance is going to be, it's prudent you position yourself to not have any more precipitous kind of actions." |
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| Warren wouldn't say whether Disney was contemplating layoffs. Disney dismissed hundreds of workers during the last recession in the early 1990s, when attendance dropped 5 million over four years. |
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| The last time Walt Disney Co. had a freeze on positions was in the fall of 1999, after the company's profits sank 30 percent because of weak video and merchandise sales and problems at its ABC network. |
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| To shore up investors' confidence in a struggling stock price, Disney announced a series of cost-cutting measures expected to save $500 million by the end of 2001. |
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| And despite achieving six straight years of record attendance, Walt Disney World has carried out several money-saving measures, from having workers wash and press their uniforms at home to laying off musicians and cutting its Traditions employee-training program from two days to one, sources say. |
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| The hiring freeze is limited to Disney World, officials said. |
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| Disneyland spokesman Ray Gomez said the California attraction has no plans for a hiring freeze: "We're in the midst of our spring hiring right now." |
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