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Re-imagining Walt Disney Imagineering: Will the coming staff cuts actually save this division of the Walt Disney Company from itself?

Re-imagining Walt Disney Imagineering: Will the coming staff cuts actually save this division of the Walt Disney Company from itself?

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The good news is ... Bob Iger has reportedly signed off on a rescue plan for Disney's California Adventure.

According to those who are familiar with this theme park revival project, Disney's new CEO has agreed (in principle) to spend hundreds of million of dollars over the next decade in order to turn DCA into a worthy companion for Disneyland. As one Disney insider who was privvy to these plans recently told me:

"The scope & scale of the DCA revival plan is unprecedented. We're talking about complete redos of certain sections of this theme park. In 10 years time, you won't even be able to recognize the place."

The bad news is ... I can't tell you who will actually be handling the redesign & retheming of this troubled theme park.

"But that's an easy question to answer, Jim," you say. "Disney's Imagineers will -- of course -- be handling the redesign & retheming of Disney's California Adventure ... right? After all, these are the guys who have handled every other theme park that the Walt Disney Company has built around the world over the past 50+ years. So it just makes sense that WDI would be right in the middle of this DCA revival project ... right?"

Well, that's assuming that Walt Disney Imagineering -- as we know it today -- still exists when work officially begins on the California Adventure overhaul project.

The way I hear it, WDI may soon be undergoing a pretty significant overhaul of its own. One that could see the theme park design arm of the Walt Disney Company laying off virtually all of the artists and technicians that still work for this Glendale-based operation. With WDI then emerging as more a project-management-based organization. With only a handful of artists & executives remaining on the payroll who can then initiate new projects for the parks.


Copyright 2006 The Walt Disney Company

What's that you say? "Bob Iger wouldn't dare downsize Walt Disney Imagineering." Well, the fact of the matter is ... After a year of carefully examining all of the Walt Disney Company's business units, Iger realized that something had to be done with WDI.

You see, right now, there's this rather poisonous culture that pervades 1401 Flower Street. One that actually encourages key employees there to engage in corporate in-fighting. Continually furthering their own political agendas while -- at the same time -- throwing all sorts of obstacles in their rivals' paths. Given this sort of working environment, is it any wonder that Walt Disney Imagineering rarely (if ever) these days actually delivers a new ride, show or attraction for the theme parks on time and/or under budget?

To be honest, while Disneyana fans may think of the Imagineers as the ultimate practioneers of the theme park art, among those who actually work within the themed entertainment industry ... Well, they have a very different opinion of the guys who work at WDI. As one industry vet recently told me:

"Nobody wastes money like Walt Disney Imagineering does. On virtually every project that those guys work on, they wind up blowing through wads of cash. But they rarely give Disney its money's worth."

That sounds pretty harsh, don't you think? Well, maybe you'd better understand the themed entertainment industry's attitude toward WDI if I cited a specific example. Take -- for instance -- last year's THEA award-winning redo of Movie Park's old "Looney Tune Adventure" attraction.

In just six months time, with a budget of only $3 million, Thinkwell Design & Production was able to repurpose this tired old indoor water dark ride and turn it into the most popular attraction at that German theme park. "Ice Age Adventure" features over 50 new audio animatronic figures, new special effects as well as a brand-new musical score inspired by 20th Century Fox's 2002 CG blockbluster, "Ice Age."


Photo courtesy of Google Images

Now let's contrast this Movie Park, Germany attraction redo with WDI's recent revamp of DCA's old "Superstar Limo" attraction. As they transformed this Hollywood Pictures Backlot dark ride into "Monsters, inc. Mike & Sulley to the Rescue!," the Imagineers pretty much did what the folks at Thinkwell did. They kept the attraction's original ride system in place. They installed new AA figures, sets and effects along the existing ride track. WDI even commissioned a brand-new soundtrack for this revamped DCA attraction. Which celebrated Pixar Animation Studios' 2001 release, "Monsters, Inc."

The end result was that -- just like "Ice Age Adventure" at Movie Park, Germany -- "Monsters, Inc. Mike & Sulley to the Rescue!" quickly became the most popular attraction at Disney's California Adventure. But the real difference between these two revamped dark rides was that "Monsters, Inc. Mike & Sulley to the Rescue" wound up costing the Walt Disney Company over 10 times what Movie Park, Germany spent on its "Ice Age Adventure" redo.

According to company insiders that I've spoken with, Walt Disney Imagineering spent almost $35 million on its "Superstar Limo" revamp. With most of the money which had originally been budgeted for the design & construction of this new DCA attraction not going toward the actual ride. But -- rather -- being applied to WDI's high overhead costs. In particular the enormous salaries that many key Imagineers earned while working on this particular project.


Photo courtesy of Google Images

Given WDI's poisonous corporate culture (Not to mention how free some Imagineers seem to be with money), Bob Iger has reportedly decided that it's time to make some pretty significant changes at 1401 Flower Street. Similar to those 650 jobs that will soon be cut at Walt Disney Studios as Iger radically revamps operations on that side of the Mouse House, rumors are now flying that Bob is looking to let 200-300 people go from Walt Disney Imagineering. Which would effectively gut this division of the company.

"And what would happen after that?," you query. Well, according to what I've been hearing, Iger would leave only a few key executives & creatives in place at WDI. And these folks ... Well, they'd then have to rebuild Walt Disney Imagineering as more of a project-management-based operation. Where artists & designers would only be hired to work on a particular project and then let go as soon as their assignment was complete.

Which I know sounds kind of cruel. Like it's the end of an era at the Mouse House. But the harsh reality is ... This is pretty much the way that the rest of the themed entertainment industry actually does business these days. With artists & designers only being hired on a per-project basis.

And given how fiscally irresponsible WDI historically has been (EX: WDW's Pleasure Island. By the time construction of this night-time entertainment complex was complete in 1989, that project was 300% over-budget) ... Well, by going this route, Mickey might actually start getting his money's worth out of the folks that design his theme parks.

"And when might the Mouse get around to officially announcing this radical reorg of WDI?," you continue. Well, the way I hear it ... This announcement is coming sooner rather than later. Folks that I've been talking with say that Disney's PR flaks are looking at the end of August / beginning of September as a possible time to drop this particular bombshell. Maybe even attempting to take advantage of the long Labor Day weekend so that this sure-to-be-controversial announcement winds up getting lost in the news cycle.

One thing's for sure. Disney wants to time its Imagineering redo announcement for that six-to-eight-week period when John Lasseter is officially away on vacation with his family. That way, WDI's new Principal Creative Advisor avoids being associated with the coming bloodbath. Which means that John can still be seen as one of the good guys. The man who's going to help turn Walt Disney Imagineering back into the sort of organization that Walt himself used to work with.

Which (in case you haven't already realized it yet) was a much smaller organization way back when. Walt had fewer than a hundred men & women on WED's payroll back in the early 1960s.

Of course, this restructuring of Walt Disney Imagineering is supposed to be a key component of Bob Iger's new "Return to Quality" program. By cutting staff levels at WDI as well as reducing wasteful spending on the design & construction of new rides, shows & attractions for Disney's theme parks ... Iger's hoping that things will eventually turn out to be a whole lot better for the Walt Disney Company. In the long run, anyway.

You know? Sort of like that 10-year-long, hundreds-of-millions-of-dollar approach that Bob is reportedly taking toward the repair & revitalization of Disney's California Adventure theme park?

Mind you, I'm imagine that the Imagineers who will soon be losing their jobs will have a rather different take on what Bob Iger's planning on doing with WDI. But what do you folks think? Given Imagineering's current corporate culture as well as its continuing problems with project and/or money management, is this sort of radical surgery really necessary in order to save the patient?

Your thoughts?

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  • Looks like WED needs a core like the Nine Old Men, Mary Blair & John Hench.

    Small but focused
  • As much as I hate to say it, I applaud this decision. Have some key creatives like Lassetter, Baxter, Rhode, etc in place...... but sub out projects to save some money.... which isn't that bad of a think when you have guys like Steve Kirk (DisneySea) and Kirk Design out there just looking for work. I don't think the quality of the projects themselves would suffer much if at all considering how amazing TDS is.
  • WDI/WED seems to be a bit of relic in its organizational structure.  Much like the old studio system with movies, the idea was that you bring in talented people and keep them under contract long-term.  The new model imagines directors and actors as free-lancers, making pictures for different companies as opportunities provide.  Imagineering would do well to adapt to that model.  And, ironically, as artists are no longer chained to one company, I think we'll see a rise in profile for people who do excellent work in theme parks.  Although painful, I think (much like the demise of the studio system) everyone will win here.  BTW, I live in Europe and "Ice Age Adventure" is loads more fun than "Monsters Inc."  
  • Hearing this news really shocks me as I was hoping to join WDI one day. Maybe it will still work out in some other way. I think it is a smart move by Bob Iger because for Space Mountain being closed for two years and all they have to show for it is mostly cosmetic changes and a slightly different track layout, they wasted their time and money. I was really disappointed by some of the new changes that have taken place at the parks and think that in the long run may improve the parks to those standards that Disney held so high.
  • Let's HOPE John Lasseter is away long enough for them to re-imagine DCA, during the WDI reshuffle--

    And no, I'm not taking up Jim's hobby...It's that:
    A) DCA originally seemed to have been too in love with its own concept art and put architectural theme before ride ideas, giving us one attraction per "land", and
    B) So far, Lasseter just -hasn't- been able to get his mind out of the "Vindicating Pixar" mentality of getting his own piece of Mickey's park-fan legacy, and yes, it WOULD be nice to see what kind of attraction contribution Lasseter will someday make that isn't geek-retro or plugging a Pixar movie for Pixar's sake...

    And I agree, they need to name creative talent at WDI who fans recognize for signature work--Thanks to all the Everest hype, Joe Rhode has already become the biggest name "celebrity" of the Imagineers with mainstream fans, even outside of the main offices.
  • I somewhat understand why Disney is downsizing.  I just don't like the fact that the Imagineers will be "outsourced".  I don't like the fact that someone who worked on a ride for a competitor could be working on a ride for a Disney park.  I like the idea of the Imagineers having long-term contracts.  I feel that the Imagineers should feel a connection to THEIR company.  I understand that some key people will be staying, and that really is a must, but I wonder how much, if at all, this outsourcing will hurt the Disney magic; will all new rides at Disney parks be so similar to rides at other parks that you could just take out the characters and plug in a competitor's characters and no one will know the difference?  I'm glad that something is being done about the theme parks; the movie division has lots of competition in the animated field, so we get dozens of direct-to-DVD animated films that don't have as much time/effort/money/love, etc. put into them.  I don't want something like that to happen to the theme parks, too.  I hope all of this downsizing will be for the better.
  • i agree with blackcauldron85, i wonder if these ideas that disney comes up with will be spread across to other theme parks now.  i'm sure there are probably copyright issues with new ideas for rides, but i just don't want to see the same rides at other parks with there characters plugged in.

    i do think this move will be for the better, though.  it's good to see that bob is serious about putting money into changing what needs to be fixed...that says a lot to me.
  • How many people from these outside design firms, had their start at WDI? It seems like every website for these firms showcase work "from their prior years working for Walt Disney Imagineering".

    WDI and their work is one of the key facets that keeps a Disney theme park from becoming a Six Flags hodgepodge.

    I am extremely worried about the direction Disney is going here. Fifteen years ago, Company A made a nice 6% return profit. Then, ten years later, with the market being what it was at the time, Company A started to get a return closer to 10%.
    Currently, the market being what it is, Company A would rather slash and burn to keep the profit margin at 10%, then to be happy to have it fluxuate down to say, 8.5%, and be content with a larger average profit.

    When the very people who profit from your company are the same ones who lose in the end with these changes, whom are you serving?
  • I doubt they'll be much of a problem with similar rides or technologies being spread in a haphazard way to other theme parks.  Every contract-imagineer working on a Disney ride would be signed to a non-disclosure agreement (NDA), and any new idea generated while working for Disney would be the property of Disney.  So if that new idea showed up with the competition there would be major problems for whoever shared the idea.  That said, I also suspect Disney might license any new technology they came up with, in which case they would be able to control how it was used.  

    As I see it, the core left at WDI would be the idea guys, doing the research and development, and they would outsource or contract the actual production.  Isn't that more what WDI was under Walt, an R & D center?  If that's the vision Iger has for WDI, then I applaud it.  But I'll wait and see how it actually comes down.
  • My fears are the same as blackcauldron85, too, but I think, even with a long list of cons, this might be the best decision.

    The danger is absolutely that the Disney magic will be lost. It gives me the heebie-jeebies to hear an implication that Iger is doing this because "This is pretty much the way that the rest of the themed entertainment industry actually does business these days." Disney is Disney because it doesn't operate that way, and it would be nice to have a complete staff of the best talent, all of them committed to the Disney flavor and vision.

    But it sounds to me like maybe WDI isn't the best talent committed to the Disney vision like it used to be, anyway. It doesn't surprise me to hear in this article about how things have changed, after reading story after story during the Eisner administration of how the best and brightest were driven out by the poison Mike poured into the corporate culture. Having rooted some of the best of the herd and deprived the rest of the opportunity and drive to excel, it seems inevitable that WDI would become infected.

    So hopefully, this is WDI's opportunity to get the best back in house doing their best work. On a per-job basis with strong leadership, there's a carrot and stick available to every contracted Imagineer. There is also a safe place for those excellent former Imagineers, stung by Disney in the past, to return and reconcile and recapture that Disney magic like the good ol' days, one adventure at a time.

    Fingers crossed.
  • Jim,

    Need more info on the California Adventure redo!!

    If CA is getting redone, are Epcot, Disney (MGM) Studios, and Animal Kingdom going to see Iger and Lasseter come riding to the rescue?

    Is California Adventure going to renamed Pixar Adventure?

    IMHO, gut the staff, use the money to make a better experience for the paying customers.  But, don't bother to touch anything unless they are commited to fixing the problem.  I am so sick and tired of the $150 million redos that don't add anything worthwhile to the park.

    Disney should also look into buying Magic Mountain in order to retheme it to the Disney Villians.  With all of that infrastructure, a little bit of Disney magic and a handful of dark rides, they could easily double the amount of people through the turnstile and make back whatever money they sank into buying it.
  • Tough love, but I think this is exactly what WDI, and Disney as a whole, really needs. I wonder what Eisner is thinking as he sits back and watches his hand-picked successor repair the damage he inflicted over the last decade?

    More power to Iger -- he's continually showing himself to be the best man for the job. Especially glad to see that he's tackling the DCA problem head-on.
  • Thank goodness. This sounds like a step in the right direction. I have heard nothing but bad things about the new Stitch ride, in fact I've heard it's a total botch, and as for California Adventure...it's a joke. It LOOKS pretty, but what's there? I've read elsewhere that attendance at that "park" is abysmal. IMO one of the first things it needs to do is get rid of that Muppet 3-D attraction. Dated, shabby and so out-of-character for a Disney park. Raze it! And I agree with the person who hopes Iger will do something about the Animal Kingdom. When it was first hyped it was supposed to have fantasy creatures, not just be another zoo. More attractions like the excellent "Bug's Life" theatre (that freaking tree is COOL) will really bring that park to life. All in all I really like the changes going on up at Disney. I can't wait to read more! Thanks, Jim.
  • In my view, if quality is the same & the budget is smaller, I'm all for this.
  • Jim has the nerve to post a new article but fails to address the issue of the missing audio CD tour.  I am really disappointed in Jim not addressing the issue.   NO MORE NEW ARTICLES FROM JIM UNTIL HE GIVES US AN ANSWER ON THE CD!
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