Disney’s prolonged closures at California-based theme parks and limited presence at its open parks have forced the company to lay off 28,000 employees in its parks, experiences and consumer products division.
In a letter sent to employees on Tuesday, Josh D’Amro, head of parks at Disney, detailed several “difficult decisions” the company had to make in the wake of the coronovirus epidemic, including ending the furlough of thousands of employees. Was.
Shares of the company fell less than 2% after closing bell on Tuesday.
According to D’Amaro, about 67% of the 28,000 employees were part-time employees. The company refused to break the layoffs by individual park locations.
Although Disney’s theme parks in Florida, Paris, Shanghai, Japan and Hong Kong have been able to reopen with limited capacity, both California Adventure and Disneyland have been closed in Anaheim, California.
“As you can imagine, a decision of this magnitude is not easy,” D’Amaro wrote in a letter obtained by CNBC. “For the past several months, our management team has worked tirelessly to avoid alienating anyone from the company. We have cut expenses, suspended capital projects, fired our artists even while paying benefits. Have given, and have modified our operations to run efficiently. While it is possible, we cannot remain solely responsible, acting only at such limited capacity. ”
The park, experience and consumer products segment is an important part of Disney’s business. Last year, the company accounted for 37% of the company’s total revenue of $ 69.6 billion.
I write this note to you today to make some difficult decisions regarding our Disney Parks, experience and product organization.
I should start with my belief that the heart and soul of our business are always people. Like all of you, I also like what I do. I also love people who think of their roles as more than jobs, but as something special, something different, and opportunities to be a part of something truly magical.
Earlier this year, in response to the epidemic, we were forced to close our businesses worldwide. Few of us could have imagined how much the epidemic would affect us – at work and in our daily lives. We initially hoped that this situation would be short-lived, and we would recover quickly and return to normal. Seven months later, we find that this has not happened. And, as a result, today we are forced to reduce the size of our team in executive, salaried and hourly roles.
As you can imagine, a decision of this magnitude is not easy. For the past several months, our management team has worked tirelessly to avoid alienating anyone from the company. We have cut spending, suspended capital projects, deported our cast members while still paying benefits, and modified our operations to run as efficiently as possible, however, we limited Working at such limited capacity, cannot be fully staffed.
As a heartbeat to perform this action, it is the only viable option in light of the long-term effects of COVID-19 on our business, including the limited capacity due to physical needs and the duration of the epidemic Continuous uncertainty is involved. .
Thank you for your dedication, patience and understanding during these difficult times. I know that these changes will be challenging. It will take time for all of us to process this information and its effects. We will schedule appointments with our affected salaried and non-union hourly employees over the next few days. Additionally, today we will begin the process of discussing the next steps with the unions. We encourage you to visit the Hub or WDI homepage for any assistance you may need.
To those who will be affected by this decision, I want to thank all those you have done for our company and our guests. While we do not know when the epidemic will follow us, we are confident in our resilience, and look forward to welcoming cast members and staff when we can.
President of Disney Parks, Experience and Products
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