Cinderella Castle and Main Street, U.S.A. are seen at Walt Disney World Resort's Magic Kingdom on Sunday, August 9, 2020, in Lake Buena Vista, Fla. (Photo by Charles Sykes/Invision/AP)
By Mike Schneider
Updated 5:35 pm ET
Squeezed by limits on attendance at its theme parks and other restrictions due to the pandemic, The Walt Disney Co. said Tuesday it planned to lay off 28,000 workers in its parks division in California and Florida.
Two-thirds of the planned layoffs involve part-time workers but they ranged from salaried employees to nonunion hourly workers, Disney officials said.
Disney’s parks closed last spring as the pandemic started spreading in the U.S. The Florida parks reopened this summer, but the California parks have yet to reopen as the company awaits guidance from the state of California.
In a letter to employees, Josh DÁmaro, chairman of Disney Parks, Experience and Product, said his management team had worked hard to try to avoid layoffs. They had cut expenses, suspended projects, and modified operations but it wasn’t enough given limits on the number of people allowed into the park because of social distancing restrictions and other pandemic-related measures, he said.
“As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business, including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic,” he said.
Disney officials said the company would provide severance packages for the employees, where appropriate, and also offer other services to help workers with job placement.
The NBA is organizing its next media rights deal to figure out which networks and streaming services will show their games for the next decade. Last time, most of the prominent streaming services didn't exist yet.
Jessica Traver Ingram, CEO and co-founder of IntuiTap Medical, discusses developing the company's Ver Touch device, the crucial FDA approval it just won, and why innovation in spinal blocks and epidurals is long overdue.
Matt Stucky, Chief Portfolio Manager of Equities at Northwestern Mutual Wealth Management chats why Nvidia has been unsteady leading up to its latest earnings results, plus what’s to come for the so-called ‘Magnificent 7.’
Walmart's revenue increased last quarter because customers kept coming back again and again. Are most shoppers buying and avoid the same products as you are?
NBA champion Kendrick Perkins and Edly founder Chris Ricciardi discuss working together to create Nilly, a new platform where fans can invest in name, image, and likeness deals of their favorite college athletes.
Off the back of their latest earnings results, Hungryroot CEO Ben McKean discusses how the company is bringing healthy food straight to customers' doors and how it's using A.I.