Walt Disney has announced that it will lay off 28,000 employees, mostly in its US theme parks.
Disney cited the parks’ limited visitor capacity and uncertainty about how long the coronavirus epidemic would last as the reasons for the layoffs.
The company’s theme parks have taken a major beating from the epidemic.
Disney closed all its parks earlier this year as the virus spread, but only Disneyland is closed in California.
“We have taken a very difficult decision to begin the process of reducing our workforce in our parks, experiences and product segments,” Park Unit President Josh DiMaro said in a statement.
The layoffs apply to “domestic employees”, about 67% of whom are part-time.
Disney has parks in Shanghai, Hong Kong, Tokyo and Paris, which are not affected by the announcement.
Disney of Hong Kong reopened last week after closing for a second time in July due to a spike in Kovid-19 cases.
All of the company’s parks have now reopened, except for Disneyland in California, although visitor numbers are limited to allow social distance.
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Disney lost $ 4.7bn (£ 3.6bn) in the three months to June 27, with revenues falling 85% to its Parks, Experience and Products division compared to the same quarter in 2019.
Mr. D’Amro said the company’s problems “have ended in California by the state’s reluctance to lift a ban that would allow Disneyland to reopen.”
Disney is working to convince California to allow the company to reopen.