Wednesday, January 16, 2008

Six Flags to Cut Costs in '08

In a recent filing with the SEC, Six Flags stated that they plan to reduce their operating expenses in 2008 by $50 million.

That is very ambitious of them. I'm guessing releasing this sort of information at this time of year means their 2007 year results are not going to be too pretty.

They say that a big chunk of the reduction will come from only using two marketing agencies, instead of three, and not doing as much radio advertising - but sticking to the internet to advertise heavily.

Also, they're going to cut costs by removing a lot of expensive to run and maintain rides - which we've heard of happening in bulk at many parks already. The company will also reduce the number of expensive, older employees through an early retirement program, and institute a seasonal labor tracking system.

If they can do it that would be nice, but only if the parks do not suffer as a result, and that I'm not convinced of.