Disney Parks Chairman Josh D'Amaro Announces a Loss of 28000 Jobs

Marco Green
September 30, 2020

He adds that, as heartbreaking of a decision this is, it could not be avoided any longer as theme parks continue to be financially impacted due to the ongoing COVID-19 pandemic.

Walt Disney Co DIS.N will lay off roughly 28,000 US employees in its theme parks division, the company said on Tuesday, as its resorts struggled with limited attendance and the continued closure of California's Disneyland due to the coronavirus pandemic.

In total, the numbed of axed employees accounts for around 25 percent of Disney's domestic resort workforce.

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. This virus has killed over 200,000 Americans and counting, and I can't help get a whiff of an implication that Florida governor Ron DeSantis is somehow doing a better job than Newsom because the Florida parks have reopened.

'As you can imagine, a decision of this magnitude is not easy, ' D'Amaro wrote in his letter. Until today, Disney had been keeping non-working Cast Members on furlough and continued to pay healthcare benefits. "However, we simply can not responsibly stay fully staffed while operating at such limited capacity", D'Amaro said.

Newsom said a month ago that he would have an announcement soon on plans to allow for a reopening of amusement parks in California, including Disneyland. Officials said Tuesday that two-thirds of the planned layoffs involve part-time workers but they ranged from salaried employees to nonunion hourly workers. Walt Disney World in Orlando, Fla., which also closed in March, reopened in mid-July with increased health and safety measures as well as reduced visitor capacity.

Past year alone, the sector account for roughly 37 percent of the company's total revenue of $69.9 billion. By operating income, parks and consumer products represented over 45% of Disney's $14.87 billion in 2019 operating income.

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