Walt Disney Company is slashing 28,000 workers at its US theme parks. Even the Magic Kingdom can’t ward off the coronavirus. The move affects the company’s theme-park, cruise-line and retail businesses, Disney said on Tuesday.
“We have made the very difficult decision to begin the process of reducing our workforce at our Parks, Experiences and Products segment at all levels,” chairman of the parks unit Josh D’Amaro said in a statement.
Disney lost $4.7 billion in its most recent fiscal quarter, its first quarterly loss in nearly two decades. Disney’s announcement could signal more challenges in the labour market’s recovery.
“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,” D’Amaro said in a memo to workers.
Though the parks in Florida, France, Japan and China have reopened with curbs on capacity, the gates still remain closed at California’s Disneyland and another Disney park there, California Adventure.