Published on : Thursday, October 1, 2020
In an unfortunate turn of events, Disney has decided to furlough nearly 28,000 employees at U.S. theme parks in light of the COVID-19 pandemic that has harshly affected the parks. The company mentioned that the main reasons behind the layoffs are the parks’ limited visitor capacity and uncertainty regarding the coronavirus situation.
It was towards the start of the year that Disney closed all its parks as the coronavirus disease reached its peak. As of now only Disneyland in California continues to remain closed. Most of the recent layoffs would apply to “domestic employees” of which about 67% are part-time. Back in August, Disney reported its first quarterly loss since 2001, losing nearly $5 billion.
Even after the resumption of operations Disneyland might not easily return to normal due as consumers are likely to be doubtful about visiting the theme parks, stand in queues and in proximity with other visitors. It is not before that a vaccine against the deadly virus is deemed effective and widely that the theme parks would have the chance to resemble how it was prior to the pandemic. Josh D’Amaro, Chairman of the parks unit confirmed in a statement that the company has made the very difficult decision to begin the process of reducing the workforce across Disney’s Parks, Experiences and Products segment at all levels.