Disney announced it is laying off 28,000 employees in the United States as the coronavirus pandemic impacts its business at theme parks and resorts.
Employees in Disney’s Parks, Experiences, and Products will be affected the most. Around 67% of the 28,000 laid-off workers were part-time employees, according to a statement by Josh D’Amaro, the head of parks at Disney.
“As you can imagine, a decision of this magnitude is not easy,” D’Amaro wrote in a memo to employees. “We’ve cut expenses, suspended capital projects, furloughed our cast members while still paying benefits, and modified our operations to run as efficiently as possible; however, we simply cannot responsibly stay fully staffed while operating at such limited capacity.”
Like many industries, Disney has been bleeding out money since the pandemic hit.
In the second quarter, the company reported a loss of $1 billion in operating income due to the closures of its parks, hotels, and cruise lines. Disney had a worst third quarter as the company reported a loss of more than $3 billion, as reported in CNBC.
D’Amaro has criticized the state of California, stating that the organization’s business woes have been “exacerbated in California by the State’s unwillingness to lift restrictions that would allow Disneyland to reopen.”
Disney originally planned to reopen the resort located in Anaheim, California, on July 17, but reopening has been delayed indefinitely.