[ad_1]
LOS ANGELES (AP) – Walt Disney Co said Tuesday that it will lay off about 28,000 employees, mostly at its theme parks in the United States, where attendance has been crushed by the coronavirus pandemic, especially in California, where Disneyland remains closed.
About two-thirds of the laid off employees will be part-time workers, the company said in a statement.
Disney closed its theme parks around the world when the new coronavirus began to spread this year. All but Disneyland, dubbed the happiest place on Earth, gradually reopened, though the company was forced to limit the number of visitors to allow for physical distancing.
“We have made the very difficult decision to begin the process of reducing our workforce in our Parks, Experiences and Products segment at all levels,” said Josh D’Amaro, president of the parks unit, in a statement.
He cited the parks’ limited capacity and uncertainty about the duration of the pandemic, which he said was “exacerbated in California by the state’s unwillingness to lift restrictions that would allow Disneyland to reopen.”
Disney shares fell 1.5% to $ 123.58 in after-hours trading Tuesday.
In a letter to employees, D’Amaro called the move “heartbreaking.” He said management had tried to avoid layoffs by cutting expenses, suspending projects and streamlining operations. The company had continued to pay health benefits for unlicensed workers since April.
“However, we simply cannot hold all personnel responsibly while operating at such limited capacity,” said D’Amaro.
Walt Disney World in Florida had employed 77,000 full- and part-time workers before the pandemic, while Disneyland in California employed about 32,000.
Disney did not disclose how many other US employees work at the parks unit, which includes consumer products, cruise lines and other businesses.
Last week, Disney officials said their coronavirus protections had been successful and urged California officials to issue guidelines that would allow Disneyland to re-welcome visitors.
– Reuters
[ad_2]
