Limited attendance to Disney’s open parks and closures at Disney’s California-based theme parks has forced the company to lay off 28,000 workers, according to CNBC. Affected employees across company parks, experiences, and consumer product division. Disney had to make “difficult decisions” in the wake of coronavirus-Josh D’Amaro, Head of Disney Parks.
- Company working to persuade state legislators to offer guidelines for parks opening
- Parks, experiences, and consumer products segment are critical for Disney, as it accounts for 37% of revenues.
- Disney’s share fell less than 2% on Tuesday.
- In Q2, the company reported $1 billion operating income loss, while in Q3, it was $3.5 billion loss due to closures
- About 67% of 28,000 laid of employees were part-time workers.
- For the past months, Disney management has worked tirelessly to avoid laying off workers, but company cannot remain fully staffed while operating at limited capacity.
- Disney’s coronavirus problems “exacerbated in California by the State’s unwillingness to lift restrictions that would allow Disneyland to reopen,” D’Amaro.
Disney’s stock price declining to the adverse news of park layoffs. DIS: NYSE is down 0.53%