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Disney will cut 28,000 jobs in US theme parks

Minnie mouse at Disneyland

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Walt Disney has announced that it will lay off 28,000 employees, mostly at its theme parks in the United States.

Disney cited the parks̵

7; limited visitor capacity and uncertainty about how long the coronavirus pandemic would last as reasons for the layoffs.

The company’s theme parks have experienced great success as a result of the pandemic.

Disney closed all of its parks earlier this year due to the spread of the virus, but only Disneyland in California remains closed.

“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,” Josh D’Amaro, president of the parks unit, said in a statement.

The redundancy fund applies to “domestic employees” of which approximately 67% part-time.

Disney also has parks in Shanghai, Hong Kong, Tokyo and Paris, which are not affected by the announcement.

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Hong Kong Disney reopened last week after closing for the second time in July due to a spike in Covid-19 cases.

With the exception of Disneyland in California, all of the company’s parks have reopened, although visitor numbers are limited to allow for social distancing.

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Disney lost $ 4.7 billion (£ 3.6 billion) in the three months to June 27, with revenues for its Parks, Experiences and Products division down 85% from the same quarter of 2019.

D’Amaro said the company’s problems were “exacerbated in California by the state’s reluctance to lift restrictions that would have allowed Disneyland to reopen.”

Disney worked to persuade California to allow the company to reopen Disneyland.

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