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Disney set to axe 32,000 jobs

Disney has announced it will be cutting 32,000 jobs at its theme parks, 4,000 more jobs than it had previously intended, due to the Covid-19 pandemic forcing the sites shut.

The additional cuts were announced on Wednesday in a filing with the Securities and Exchange Commission and will reportedly come into effect during the first few months of 2021.

The group which employed approximately 203,000 people as of October 3, 2020, said approximately 155,000 employees worked in the parks, experiences and products segment adding that the sites have been “significantly impacted” by Covid-19.

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Disney recently reported a 61% decrease in parks, experiences and products revenues to $2.6bn (£1.9bn) in its quarterly update due to declines at both the domestic and international parks.

Disney said : “The most significant impact of Covid-19 on fiscal 2020 operating results was an estimated detriment of approximately $6.9bn (£5.1bn) on operating income at our parks, experiences and products segment due to revenue lost as a result of the closures or reduced operating capacities.

“As a result of Covid-19, Disneyland Resort and our cruise line business were closed for all of the current quarter. Shanghai Disney Resort reopened in May, while Walt Disney World Resort and Disneyland Paris re-opened in mid-July.”

The company added: “Hong Kong Disneyland Resort was open for about two weeks at the beginning of the quarter and about one week at the end of the quarter. All of our re-opened parks and resorts operated at significantly reduced capacities during the current quarter.

“We estimate the total net adverse impact of Covid-19 on segment operating income in the quarter was approximately $2.4bn (£1.8bn).”

 

 

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