Disney to lay off 28,000 employees as coronavirus continues to cripple its theme parks business
Disney is set to lay off around 28,000 employees across all of its theme parks in the United States as prolonged closures and limited attendance have decimated profits.
The announcement was made in a letter to employees Tuesday from Josh D’Amaro, Disney’s head of parks, who detailed several ‘difficult decisions’ the company has been forced to make amid the ongoing pandemic.
One such decision includes ending the furlough of thousands of its employees.
Around 67 seven percent of the 28,000 laid off employees were part-time workers, but they ranged from salaried employees to nonunion hourly workers, Disney officials said.
Disney declined to disclose how many of the workers let go had been employed specifically at its theme parks to CNBC.
Disney is set to lay off around 28,000 employees across all of its theme parks, experiences and consumer products segment as prolonged closures and limited attendance have decimated profits
While the company has been able to operate its parks in Florida, Paris, Shanghai, Japan and Hong Kong at a limited capacity, California Adventure and Disneyland have remained shuttered in Anaheim California since the spring.
‘As you can imagine, a decision of this magnitude is not easy,’ D’Amaro wrote in his letter. ‘For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company.’
D’Amaro continued that the company has cut expenses, suspended projects and modified operations but it wasn’t enough given limits on the number of people allowed into the park because of social distancing restrictions and other pandemic-related measures.
‘We simply cannot responsibly stay fully staffed while operating at such limited capacity,’ he added. ‘As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business’.
Disney officials said the company would provide severance packages for the employees, where appropriate, and also offer other services to help workers with job placement.
The parks, experiences and consumer products segment is paramount to Disney’s business model.
Last year alone, the sector account for roughly 37 percent of the company’s total revenue of $69.9 billion.
This is a developing story. Please check back for updates…