Walt Disney Co on Tuesday announced that it will let go of around 28,000 workers, most of them from U.S. theme parks, as the coronavirus pandemic triggered extended closures and low attendance, especially in California where Disneyland remains shut.
"We've made the very difficult decision to begin the process of reducing workforce at our Parks, Experiences and Products segment at all levels," Reuters quoted the chairman of Disney Parks, Josh D'Amaro, as saying.
Calling the decision "heartbreaking," D'Amaro said it's the only reasonable recourse Disney has at the moment, in view of the continued ill effects of the pandemic on the company.
Disney said that around 67 percent of the personnel – referred to as "cast members" – that will be given the pink slip will be part-time employees. The company's parks and resorts unit has over 100,000 workers in the U.S.
D'Amaro disclosed that one of the reasons they are forced to lay off workers is because of issues made worse in California and by the state's reluctance to ease prohibitions that would enable Disneyland to get back in business.
The enormous job cut was the most unexpected among multiple cost-cutting moves initiated by Disney, which has suffered billions of dollars in losses in potential sales as a result of prolonged closures at its amusement parks and cruise lines since the pandemic-enforced shutdowns in March.
The closures of Disney's theme parks have cost the company $3.5 billion in the third quarter. Disney reported a loss of $4.85 billion in the same period in 2019, with revenue plunging 43 percent to $11.79 billion.
Meanwhile, in Shanghai, China Disney's theme park has continued to gradually increase its operational capacity after being given the green light by China's Ministry of Culture and Tourism.
According to the official Shanghai Disney website, a "Notice on Further Business Resumption of Tourism Enterprises," has been granted to Disney, enabling the company to raise its operating capacity from 30 percent to 50 percent.
In Hong Kong, Disney theme park reopened for business on Friday after being forced to close since the coronavirus broke out early this year as the bustling financial district has curbed its current COVID problem, despite the temporary consolation.
